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Strategic & Financial Arguments(TM)
for the pulp and paper industry worldwide
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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.
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What happened?
It has been an interesting month...
Not only did a major company announce it was reducing capacity, it immediately turned around and turned some of that capacity back on. I think we are all still scratching our heads over that one.
In the meantime, the PM 40 chose to take off, starting around the first of October, when it bottomed at nominally 2,800 (January 1992 = 1000). It has recently been as high as 3,260, a jump of 16% in about five weeks. It's all-time peak, around 3,550 was reached last April, but it is recovering nicely.
One explanation is perhaps this. Rayonier Advanced Materials replaced Verso when it was delisted by the NYSE back in September. However, industry stocks in a broader view have moved up, too.
The next stock that will be coming out of the PM40 is Wausau, when the acquisition is completed by SCA. Readers, do you have any recommendations for a replacement? You can email me at jthompson@taii.com.
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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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