Hi Robert: "PRNS, The only pure recylical paper play in the U.S." is what the 500 team, at Charles Schwab, told me about the Company. It had a high of 19 3/4, to a low of 1 1/2.(whence it just came from) Now from what I can gather, the company suffered a two point blow in the market recently for 2 main reasons. The first: Recyclicable paper product's prices have climbed to a point where they merge with new paper goods. Printers prefer NEW paper for their presses. The urge to save trees is not pressing anymore as people have figured out that the wood and pulp industry plants more trees than we could possibly use. In fact, if we didn't have a paper industry, Fires from lightning would have caused less trees to exist today than there are now. This hurt the bottom line alot. In most cities in the U.S., collected paper goods are used for garbage to energy as the cost of just de-inking it makes it prohibitive. Now, this is finally changing. New ways of processing pulp to usable paper, plus, a large growing demand overseas have pushed prices sky high, and going even higher. The company also sold shares to raise money for a new and up dated plant which pushed their bottom line down.
There might be something else that nobody's talking about also. I've never seen this much Volume (buys at the ask) since the first few days of CAWS. If today was any way to gauge, I'd have to disagree a bit with Samir. I think the stock will go even higher tomorrow. It seems that something other than the higher prices for paper is pumping the stock. Maybe you or somebody else can let us know?
Mahalo, Terry O. |
