Why Jim Cramer Thinks KapStone Paper & Packaging (KS) Could Be a Great Play for 2015

NEW YORK (TheStreet) -- TheStreet's Jim Cramer says linerboard and paper company KapStone Paper & Packaging  (KS) could be a smart play for 2015.

Cramer explains that linerboard, which he calls "one of the truest tests of an economy," takes off in pricing when an economy improves. When this price increase happens, many more typically follow. These are fixed-cost plants, which means the companies make a lot of money.

Cramer highlights KapStone because plants in the late 1980s cost hundreds of millions but now cost billions. He says what would happen back then is companies would expand and put up new plants when linerboard prices went up, and it would wreck the pricing. But this does not happen today because the plants cost too much and there are lots of environmental restrictions in place on building new plants.

Must Watch: Jim Cramer Says Watch KapStone, Could Be a Great Play for 2015

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Therefore, he suggests investors keep an eye on KapStone because it could be a great play for 2015.

TheStreet Ratings team also rates Kapstone Paper & Packaging as a "buy" with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate KAPSTONE PAPER & PACKAGING (KS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, increase in stock price during the past year, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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