|
|
Strategic & Financial Arguments(TM)
for the pulp and paper industry worldwide
|
|
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.
|
|
The PM40 has been flat for a year...
The PaperMoney 40, or PM40 has, for all intents and purposes, been flat for the last year. Since its inception in January 2002, it has never displayed this behavior for this length of time.
The US economy, off which the PM40 plays, has been in fairly good shape in these past twelve months. Yet, from about October 2009, when the PM40 recovered from the financial fallout of 2008, until about a year ago, the PM40 almost doubled.
Now it has been flat. Our speculation is that pulp and paper producers have been able to make small tweaks that have kept production in line with demand and kept profits growing. Now, however, both demand and the capability of extracting any more production from existing operations are both tapped out.
One could conclude that optimism about future demand will soon put shovels in the ground, expanding capacity.
We will be watching.
|
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. |
|
|
|
|
|
|
|
|
