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October 3, 2008 Dear Friend, Attached you will find our an update on IP. On October 1, 2008 they announced that they have decided to shut their No. 2 Paper Machine at their Albany Mill for a minimum of 3 months. The machine had an annual capacity of 250,000 tons of linerboard. IP continues to shut capacity to match supply with demand. We believe that continued capcity reductions are in sotre for IP as they force price hikes on their customers. We feel IP is determined to achieve improved operating margins at the expense of a few customers. We continue to hold our price target and investment rating steady as the closure made only a minor impact on earnings expectations. Faithfully yours, Joseph G. Reagor |
Copyright © 2008 John Tumazos Very Independent Research,
LLC
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