Strategic & Financial Arguments(TM)

for the pulp and paper industry worldwide

June 2016

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.

Should analysts dig deeper?

Financial analysts, the readers of this newsletter, have often limited their remarks strictly to the financial activities and performance of companies they follow. That is their mandate and, perhaps, by law or company policy that is all they should do.

This got me to thinking. In the long term, a company's policies and performance concerning personnel safety and environmental compliance should appear in their results. After all, if they are operating in an unsafe manner or receiving onerous fines as a bad environmental player, it will ultimately show up in their financial results. However, could these matters be a leading indicator? Should analysts be looking at these matters in real time for a clue as to future financial performance?

In the fine print, companies disclose pending lawsuits, fines and so forth, but this is almost after the fact. Future economic performance could be better predicted, perhaps, by looking at real time reports on accidents, reported environmental excursions and so forth.

Perhaps I just expanded your job description...

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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