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

To: elcasmirb who wrote (314)	1/6/1999 8:54:00 PM
From: jack BROSS	Respond to of 485

HI ELCA, TAKE YOUR TIME,and keep your stock. jack bross

To: elcasmirb who wrote (314)	1/7/1999 8:32:00 AM
From: Yo Yo	Respond to of 485

From the most recent 10Q. (see below) Take note of the last sentence. This is a highly leveraged company in an industry with considerable overcapacity. A significant number of the factors that determine this company's future are WELL beyond its control and very unfavorable. It is a crap shoot. ------------------------------------------------------------------ OUTLOOK Kraft pulp markets continue to be weak. Significant downtime announced by various industry players is helping bring Norscan inventories down to 1.75 million metric tons at the end of September from 1.9 million metric tons at the end of August. However, more reductions are necessary before any recovery in pricing occurs. Industry Mill inventories for coated groundwood paper at September 1998 were 205,000 tons. They were 75,000 tons higher than one year ago, but still 98,000 tons below their 303,000 ton peak in May of 1996. The same is true for reported consumer inventories as of the end of August, up 30% from one year ago. While total inventories are well below earlier peaks, the rising trend is not favorable and bears close watching. It should also be noted that imports continue to rise. Coated groundwood imports are up 24% year to date compared to 1997. Of the three major consumers of lightweight coated paper ("LWC"): magazines, catalogs and commercial printing, magazines continue to enjoy solid growth with ad pages up 3% and revenues up 8%. Shipments of LWC were up 10.5% for the first nine months of 1998 to this end use. Catalogs also are strong while grade substitution continues to negatively impact commercial printing applications. In spite of the economic turmoil and paper industry weakness, third quarter EBITDA was very consistent with the second quarter and other results were quite satisfactory. Repap's shipments were up a strong 3% over the second quarter, our inventory declined to its lowest level in two years, order backlogs remained stable and the New Brunswick mill continued to run well with low costs and good efficiencies. Price declines were moderate and were mitigated by the weak Canadian dollar. Unfortunately, industry conditions are weakening and we cannot expect to avoid negative impacts going forward.