RE:why share price is stockThe decline in envelope volumes is nothing new, the company has been managing this for years. They have grown market share in the US, improved margins, and made acquisitions in packaging. The stock is only trading at 5x PE, so in my view it is already reflecting an overly pessimistic outlook. I expect a rebound in the stock when they report Q1.
microcaphobby wrote: The company benefitted from a 24% price increase in envelopes . However the volume of envelopes sold decreased and that is the trend. It is innevitable that envelope use is declining. Unless the company can move away from its depedance on envelopes, the share price will continue to decline. Those who sold at the peak prcie shold feel very fortunatel. Those who still have a profit should consider selling their shares.
Unless the compnay can continue to pass on price increases of enevelopes, I don't see a great future for the company. Enevelopes are made all over the world and what is to stop Staples, etc from importing them from countries that have a much lower cost of production.