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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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You can fix this
Analysts should demand a change from the pulp and paper companies. The events of 22 Jan 16 should not stand...
A well-known newsletter in the pulp and paper industry announced a decrease in the price of certain grades of paper on Friday, 22 Jan 2016. On Monday, 25 Jan 16, the PM40 lost nearly $10.5 billion in market cap. I wrote about this in PaperMoney. Most of this was recovered by Friday, 29 Jan 16, but that is of little consolation. This kind of whipsawing for a capricious reason is unacceptable.
As you know, as an analyst, you have a great deal of influence as to how pulp and paper companies behave.
As a group, even though you are competitors, you have even more of an influence.
Therefore, I am calling on you somehow, in some way, to raise your voices, singularly or collectively (all within the limits of the securities laws, of course) to demand that pulp and paper companies find a way to deal transparently with raw materials and commodity-style finished goods pricing.
It does the companies, you, and the investors no good to allow capricious events to affect the market value of companies, even for a week. It distorts the entire process and the principles of investing.
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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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