GREY:FTPLF - Post by User
Post by
rythmanon Oct 18, 2013 2:13pm
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Post# 21828246
Hard to see an upside..
Hard to see an upside..
On the positive:
The co-gen is up and running
They have cash in the bank
The Lanquart Mill is break even
Pulp prices are up slightly this year
US may soon remove subsidies for cotton production
Thurso can be operated as a swing mill
A buyout at this time is possible
On the negative:
Chinese orders for DP slowing down waiting on news on tariff
Expect at least a 10% tariff
If they impose a tariff, it negates the immediate benefit the co-gen brings
South American production of specialty paper pulp negates switch to NBHK
Over supply of DP will keep DP pulp prices low for the foreseeable future
Expect to see Third Quarter earnings 1st week in November. Expect Loss and will see how much cash remains.
These are risky times.
IMHO
rythman