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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: peter michaelson who wrote (8412)	3/23/1999 3:50:00 AM
From: Stitch	Respond to of 9980

peter, <<These companies are extremely capital intensive and have high fixed operating costs to boot. I have seen paper companies go bankrupt at 72% capacity utilization, and boom at 80%. Every percentage point above break-even is very significant.>> Many thanks for the comments on the paper industry, much of which I could confirm in wading through a few balance sheets and operating statements recently. It is a very capital intensive industry with models that rank nearly as high as semi conductor operations. But a BK at 72% utilization would suggest there were issues other then run rate involved IMO. Best, Stitch