Strategic & Financial Arguments(TM)

for the pulp and paper industry worldwide

June 2014

Participating as industry experts in pulp and paper financing and M & A deals around the world for over two decades, we continue to see the same mistakes made over and over. This newsletter is designed to help you avoid costly mistakes we have seen others make. We will be giving you one or two points each month to help improve your performance.

A port in stormy times

Good news for the pulp and paper industry...

As I write this on 14 Jun 14, Flag Day in the United States, I can't help but marvel the turmoil in the world today. Domestically and internationally, tensions are high, violence is real, and there is a general state of unsettled conditions. And when I say domestically and internationally, I am saying that from the perspective of where you may be sitting, in other words, your home location makes no difference--almost everyone can make this statement.

The good news is that, for the pulp and paper industry, in the big picture, these conditions can be considered good news, as compared to some other economic sectors.

I remember back in the dot-com boom, Hanson was running investor ads talking about the merits of the brick industry (and other construction industries in which they participate). Rightly so, they were pointing out that bricks are solid, lasting and needed.

We can say the same thing about the vibrant grades of pulp and paper--tissue and packaging. I call tissue the first luxury good. For in a third world country, you'll often find one of the first widely accepted consumer goods is toilet tissue.

And packaging--it is absolutely essential. Just look around you.

So, in a world of turmoil, you can take comfort in following the pulp and paper industry. A basic industry with products vital to everyone. When everything else goes to hell in a hand basket, people still need these essential products.

Yes, I am bullish on pulp and paper stocks. But I always am!

If you have a casual question or a major deal, call me on my personal cell phone - 404-822-3412 or email me at jthompson@taii.com. We are here to help.

Sincerely,

Jim Thompson, CEO
Talo Analytic International, Inc.

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