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 PyroBurns
Wake up and findout
Registered: 10/14/07
Posts: 1,278
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 My IP (Int Paper) stock worries me.
#8345457 - 04/30/08 09:23 AM (3 months, 20 days ago) |
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Today it went down FIVE percent! I'm twelve percent down, and from all my reading and research, they are a great company. I thought the stock was undervalued at $30, but now they are at 25. What gives?
It also sucks because I need the money within two months and I don't want to sell at a loss.
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Remember to cut your nails regularly.
Edited by PyroBurns (04/30/08 09:24 AM)
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mndfreeze
Shroomery Secret Service
Registered: 09/04/04
Posts: 4,469
Loc: PuppetMasterFlash
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 Re: My IP (Int Paper) stock worries me. [Re: PyroBurns]
#8345497 - 04/30/08 09:40 AM (3 months, 20 days ago) |
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I found some artickles on the virtual stock site I'm on mentioning their input costs outweighed their net gains. Thats my guess.
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This signature space for sale.
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 phi1618
old hand
Registered: 02/14/04
Posts: 3,653
Last seen: 7 days, 4 hours
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Re: My IP (Int Paper) stock worries me. [Re: PyroBurns]
#8345660 - 04/30/08 11:37 AM (3 months, 20 days ago) |
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Looks like they just reported results short of street expectations.
I wouldn't invest in a paper company for the long term right now - over time, people will continue to use less paper, and the company will continue to sink. The P/E isn't great (about 10), and the stock's trading above book value. For a shrinking company in a shrinking industry I'd want a much larger discount than that.
Of course, I haven't done much research - YMMV.
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geokills
······· º¿°·······
Registered: 05/08/01
Posts: 13,111
Loc: city of angels
Last seen: 1 hour, 55 minutes
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 Re: My IP (Int Paper) stock worries me. [Re: PyroBurns]
#8346127 - 04/30/08 02:14 PM (3 months, 20 days ago) |
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IP is a mature company with low prospects for immediate growth. I also believe they overpaid for the acquisition of Weyerhaeuser's packaging business last March. Smart move for Weyerhaeuser though, leaning up their operations to focus on their core business! Don't really have much to say about IP, as I think it's a pretty boring stock.
Forget about paper, how about glass? Might want to switch into Owens Illionois (OI). They make glass containers for a huge array of major companies, international and domestic. Many companies are also looking to move away from plastic bottling due to concerns of chemicals leeching out into the fluid, which should help grow OI's already robust business. They currently produce for Anheuser-Busch, Diageo, H.J. Heinz, Molson/Coors, Novartis, Pepsico, SABMiller, Saxco-Demptos, Foster's, Heineken, InBev, Lion Nathan, Scottish & Newcastle, among others. This company has also been leaning up their business by selling off their plastics packaging business last July.
PS. It's never too late to sell. If you have such a short-term time horizon (2 months?!), it's not like you can wait around forever anyway. Selling a 10% loss isn't the end of the world... I've been in positions where I felt it necessary to cash out with greater than 30% losses before. Keep in mind that though it is not always the case, after a bad quarter, prominent analysts may come out over the next few days with negative research notes (i.e. downgrades as a result of the quarterly report), which can further drive down a beaten stock. Yet another example why you should NEVER invest all of your money in a single stock. Diversification is key in reducing your risk exposure.
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