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Strategic & Financial Arguments(TM)
for the pulp and paper industry worldwide

December 2019

Participating as industry experts in pulp and paper financing and M & A deals around the world  for nearly three decades, we continue to see the same mistakes made over and over.  This newsletter is designed to help you avoid costly mistakes we have seen others make.  We will be giving you one or two points each month to help improve your performance.
 
The pulp and paper industry is behaving in a peculiar manner

By Jim Thompson
 
While the ISM has dropped for four months in a row, the PM40 shown a modest rally since mid-July.  What gives?

It is hard to tell, but one thing seems to be working in favor of properly running businesses:  inventories seem to be very tightly managed at this point in time.

If you don't make it, you don't have some of the larger input costs, so cost control can be tight, too.  This goes for energy as well as raw materials.  

What we don't know is what kinds of deals sales folks are making to move inventory?  Are they selling ahead? If so, what is that doing to income now and in the future?  It would be nice to have some transparency on this.

In the meantime, enjoy the results.  But watch closely, very closely.

Have a comment?  Email me at jim.thompson@ipulpmedia.com

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If you have a casual question or a major deal, call me on my personal cell phone - 404-822-3412 or email me at jthompson@taii.com. We are here to help.

 

Sincerely,

 


Jim Thompson, CEO
Talo Analytic International, Inc.
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JRT Banker's Engineer