A story recently published in the Globe and Mail reported gloomy prospects for the pulp and paper industry. Forecas…
A story recently published in the Globe and Mail reported gloomy prospects for the pulp and paper industry. Forecasts of mitigated pulp, paper and containerboard prices characterized the report, as did projections of no recovery until 2008. Smith Barney analyst Chip Dillon has estimated that after cutting profit estimates for containerboard companies Smurfit-Stone Container and Packaging Corp. of America last week, the trends afflicting this market segment will now extend to the industry as a whole. On a more positive note, the analyst indicated that while some stocks in the sector are currently sitting at the lowest prices seen in years, that now might in fact be a good time to buy them, as "it often pays to be early in paper."
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