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Strategic & Financial Arguments(TM)
for the pulp and paper industry worldwide

September 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.
Thanks and a question which you likely can't answer

Your response to using our tools from Paperitalo Publications as outlined in last month's issue was gratifying...


Thank you for picking up on our suggestions last month.  It is clear that you did so--we saw a marked increase in the traffic on the aids we provide.


Here is the $100 billion question:  When is the stock market going to suffer a correction?  


We, of course, are interested in this from the viewpoint of the forest products sector, however we all know that "no man is an island" (or any economic sector) and the inevitable correction will affect everything.


The US Federal Reserve Quantitative Easing or whatever they call it these days has done its good and has moved into the phase where it is doing its damage.  


Little thought is given to what is happening on the interest rate side.  Yes, if you happen to be refinancing a legitimate business, it is delightful to be able to do so at today's rates.


However, with desperate cash holders looking for better returns, it is equally reasonable to think that some junk bond status deals are being funded that should not be.  There would be little to be concerned about with these deals if they punished only the funders and the developers.  Unfortunately, ignorant developers can upset the markets of legitimate businesses with desperate product pricing schedules.


These conditions have been going on for a long time, and may seem normal, but they are not.  One of these days, we are all going to pay, in ways we cannot anticipate.

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.




Jim Thompson, CEO
Talo Analytic International, Inc.
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