Lorne,
Sorry for the delay in responding to you, but a had a few computer problems to solve.
1. I'm I an insider? NO. Do I know the business, yes. Is it part of my life, yes. Do I trade "paper" yes!
2. Do I work for Repap - NO.
3. Do I have a position with Repap - YES.
4. Coated market has turned - UP.
5. Coated Prices (NO.5 Coated ground Wood) are up.
6. IS "4" and "5" good for Repap - you bet.
7. Are repap's earnings up for 2nd Q - in my view, very much so. Reduced overhead (BC gone), higher prices, higher margins spell a profitable second quarter for Repap. Problem is market hasn't noticed yet......
8. Item seven will make parts of repap more valuable, this is good for eventually sale (s).
9. Repap is not solvent yet, but with 3 and 4th quarter looming over the horizon, expect even better earnings, and at this rate, repap will be solvent and back form the dead.
10. Will repap have to sell off assets to stay afloat, perhaps not, but it would certainly help.
I am very bullish on Repap, it is now a sleeper with outstanding value.
I don't buy the Street talk about Petty going alone, dam it, the guy knows this business, and he has just dodged a major bullet.
Real losers this year will be Avenor! They had a chance to pick up Repap - despite the debt - the earnings picture looks very solid indeed, and Avenor would have wished to have some of the world class machine Repap has - uh!
At any rate, I feel very good about Repap.
Fundace |
