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February 10, 2010 Dear Friend,
We cut our earnings estimates
and our price target for Overweight-rated Temple-Inland to $21
from $23 per share. We did not model full implementation of
announced containerboard price hikes, despite appareant
"cost-push" of $140 per ton old corrugated containerboard scrap
and rising pulp log fiber costs The weaker euro jeopardizes
recent high industry exports and domestic demand recoveries have
been slight. We ignored recent $305 per 000 board feet lumber
prices, and did not raise our building products earnings
estimates.
The stock offers upsides to
$21 from its $16.97 per share close, but we believe BHP
Billiton, Xstrata, Vale, FCX, Allegheny Tech., Worthington Ind.,
Duluth Metals, FNX Mining and some other companies offer much
better upsides.
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Copyright © 2008 John Tumazos Very Independent Research,
LLC
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