Stock price when the opinion was issued
They are dynamic and determined. Have done some wonderful purchases of the plants. Using pulp to manufacture rayon. The swing on this stock in the downward direction is very much tied into the pricing of cotton, which seems to be one of the most violent commodities. Very difficult one to gauge at the moment.
Cautious on this one. They have 3 basic businesses including dissolving pulp, a mill in Germany that makes wallpaper and a mill that makes paper for currency. 2 of them are not doing particularly well. Dissolving pulp is not bearing fruit yet and the currency paper mill is having some struggles. Too many irons in the fire and needs time to pull it all together.w
Great idea but there was a lot of execution risks that came into the name. Things that were going to happen in a quarter were pushed back, plants that were supposed to perform at a certain level performed at lower levels, etc., etc. Management is doing their best to turn it around but there are now some very big execution questions over the company.
In the penalty box. Had problems getting on track with their dissolving pulp plant in Québec. Just hired a new manager of the plant, which the market likes. Suspects the wallpaper facility in Dresden Germany and the printing facility in Switzerland are both up for sale. If they sell the Dresden plant, it could probably fetch $200-$300 million, which would pay off all debt. Have to show a couple of quarters of consistency.