I saw this on briefing.com...
International Paper (IP) 53 1/2 +2 5/16: paper and pulp products concern posts a 2nd qtr loss of $1.39 a share,
including charge, vs year-ago net of $0.33 a share; company was projected to make $0.15 a share, excluding charge;
company expects additional charge of $150 mln for legal reserve; company to sell imaging business, and Kraft packaging
unit.....
And I investigated further... from yahoo.com:
Second-quarter earnings before the charge were $59 million, or $.20 per share, on sales of $5 billion. Earnings for 1997's
first quarter were $34 million, or $.11 per share, on net sales of $4.9 billion.
1 year ago, Price was $37. Now, from July 1996 to May 1997, IP was mostly flat. Now it's over $55. 50% gain in one year, and its earnings were lower than last year's.
Oh but it did beat street estimates (.20 before charge vs. .15). But still, it earned < 60% what it earned same quarter last year.
PE of, what, 70?
Sure, the paper industry may turn around... but seems to me that if a company has one shred of good news, it will get priced at an obnoxiously high multiple.
*sigh*
-Mike |
