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Gold/Mining/Energy : Pallet Pallet Inc.
PPAL 60.100.0%Nov 7 9:30 AM EST

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To: Serge Collins who wrote (128)3/6/1997 7:19:00 PM
From: Bill Foulds   of 451
 
Being in the timber industry, I can tell you that the quality of the lumber that Pallet Pallet uses in the construction of pallets is of a less quality and price than the index they quote on the futures market. The price for pallet grade lumber has remained fairly low and the futures should back down in the near term for all grades of lumber anyway. All the competition will be paying relatively the same price for lumber and if anything, Pallet could probably get a little discount for being a volume user. I don't know if the pallet industry has a price structure to pass along price increases to the consumer or if they have to eat any price increases in materials cost. Long in Pallet Pallet and going for the ride for a while! Cheers! Bill
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