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

January 2019

Participating as industry experts in pulp and paper financing and M & A deals around the world  for over two 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.
 
Surprise! The industry survived the last month!

By Jim Thompson

Last month I talked about the Lesson of Hanson--the brickmaker that pointed out during the dotcom bubble that the world always needs bricks (and other building materials).  I compared our industry to that one.

In the ensuing 31 days the stock markets have behaved as if the world doesn't need anything.  Now, I know there is a lot of program trading these days.  I don't understand it, not in my wheelhouse, but it seems to me like the adults in the room should occasionally walk over and unplug the computers!

Despite the wild gyrations on Wall Street in the last thirty days, I don't believe anyone has stopped using bathroom tissue, kitchen roll towels or corrugated containers.  Am I missing something?

Our products are the staples of the modern world.  Do they fluctuate in demand and pricing?  Some, but nothing like the markets have implied in the last month.  Get a grip.
 
Have a comment?  Email me at jthompson@taii.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