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Gold/Mining/Energy : Repap (RPAPF) -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Latchum who wrote (231)	8/12/1998 9:42:00 AM
From: scott	Respond to of 485

dennis, this is one of the easier companies to analyze and to invest in. but it takes discipline. buy around 12 cents and sell around 30 cents. in between go fishing. this stock has no sex appeal - just one mill in a difficult, commodity driven industry. remember there is a huge amount of debt and 740 million shares o/s. the mill is worth around 15 cents a share with perhaps a chance of someone paying as much as 25 cents-but that is reasonably remote. one of the problems is that one of their assets is the tax losses which a foreign player cant take advantage of. and canadian fp companies dont have any cash-and the bonds have change in control clause that would accelerate the payment of princiapl if they get taken out. which means that the acquirer would have to finance effecting the entire 1.2 to 1.4 billion. not a good time to be hitting the capital markets. but at 12 cents, not a bad buy but be disciplined. imho scott