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June 8, 2011 Dear Friend,
We raised our price target to $35 from
$22, our rating to Overweight from Neutral and our earnings estimates as
discussed herein. Despite the $8.48 per share or 48% price appreciation
yesterday following the Monday night $30.60 bid from IP, we believe TIN will
rise more. We believe IP may discuss synergies in greater detail and raise
its bid. We believe TIN will sell its gypsum, lumber and MDF/particleboard
units to buy back 20 mm common shares in a "Dutch Auction" format, which
would be hugely accretive. Either alternative appears to have fine upsides.
Our dialogue with a union representative is contained in the attached Allegheny Technologies report concerning the expiration of union contract at Brackenridge, PA on June 30th, which could involve some cost increases. John C. Tumazos, CFA |
Copyright © 2008 John Tumazos Very Independent Research,
LLC
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