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Gold/Mining/Energy : Repap (RPAPF)

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To: pthomaso who wrote (323)1/20/1999 10:11:00 PM
From: Brian Wilson  Read Replies (1) of 485
 
Repap is a very viable co. with a strong order sheet and excellent product. It suffers from two things: Too much debt and (2) cheap competition from Asian manufacturers who can't find enough of a market in their own back yard. Debt will not eliminate or reduce viability because the lenders will restructure rather than liquidate. As well, almost an entire New Brunswick town depends on the company so the province will stand behind the company. The Asian crisis will pass (I give it 2 years) and prices will firm up. Hang in.
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