Tambourah Metals Ltd T.TMB.W

Downgrades

[oddykog]

I suspect the overall lack of interest in Tembec and the ratings downgrade last week present an excellent entry point into this company's stock  Pulp markets, whether NBSK or disolving pulp are the core products of Tembec and these markets look pretty decent unless we get a serious recession again.  Yes, lumber is poorer now than it was in the spring and yes, newsprint continues to be depressed but Tembec is going to continue to make money as long as the pulp markets hold up.  The analysts are missing that while the lumber/paper sector is declining in North America it is growing in Asia and that is where the incremental volumes and the higher prices are going to come from.  Meanwhile Tembec is generating cash from asset sales and from its core business and should have a pristine balance sheet by the end of this year.