SADIF Analytics Assigns Negative Long-Term Outlook Rating to International Paper Company
Released on: September 25, 2008, 5:54 am
Press Release Author: SADIF-Investment Analytics SA
Industry: Financial
Press Release Summary: SADIF-Investment Analytics SA has applied its StockMarks™ stock-rating system to International Paper Company and produced a research report, rating the company's attractiveness to long-term investors.
Press Release Body: Mira, Portugal – September 25, 2008 – SADIF Investment Analytics SA, today announced the release of a new equity research report covering International Paper Company The report utilizes SADIF's powerful StockMarks™ stock rating system and is required reading for any current or potential International Paper Company investor.
Report Summary: US-based International Paper, is one of the largest paper companies in the world. The company has undergone major restructuring over the past three years, including selling off non-core units such as its wood business and focusing on international diversification to European and Latin American markets. International Paper also paid down significant amounts of debt with the proceeds from the sales. However, the company is currently facing new problems, including, rising raw material and energy costs, foreign competition and a slowing global economy. On September 9th the company announced that it was closing a containerboard paper plant in Oklahoma, citing the high cost or raw materials for the production of corrugated packaging. Similarly, on September 8th, rival NewPage closed a paper plant in Wisconsin because it had become uncompetitive with foreign imports. However, International Paper's second quarter earnings were boosted by higher paper and packaging prices. Furthermore, cutbacks on production and headcount at major European producers such as UPM-Kymmene Corp and Stora Enso Oyj have effectively placed a bottom under paper prices. Nevertheless, when assessing International Paper as an investment target, we should look at the company's long-term fundamentals. We can asses International Paper's long-term outlook through the use of the StockMarks framework. International Paper currently has an overall long-term investment attractiveness rating (Total StockMark or SMT) of 34, rating below the average of US-listed companies. This rating places International Paper ninth when compared to ten of its closest peers, selected on the basis of similarity of business and market positioning.
The complete report breaks down the Total StockMark into its three components – Business, Management and Price, performing a thorough analysis of International Paper Company for long-term investors.
A summary of the StockMarks™ ratings for International Paper Company is available here: http://sadifanalytics.com/stockmarks/company.php?ticker=IP&cod_country=125
The report has been distributed to Reuters, and forwarded to Yahoo Finance and FT.com. It is available under 'Analyst Reports' from these websites or directly from SADIF-Investment Analytics SA at http://sadifanalytics.com/stockmarks/article/hist_article.php?cod_article=147&cod_country=125
About SADIF-Investment Analytics SA SADIF-Investment Analytics SA is an independent investment research company covering sixteen different markets and over 12,000 companies. Our StockMarks™ system is based on proven investment principles and is designed to drive long-term shareholder returns.
Web Site: http://www.sadifanalytics.com
Contact Details: Company: SADIF-Investment Analytics SA Address: AIBAP, Rua do Matadouro, 3070-436 Mira, Portugal Phone Number: (+351) 231849038 Website: www.sadifanalytics.com Contact Person: Andrew Kerr Position: Head of Equity Research