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

  • Printer Friendly Format
  • Back to previous page...
  • Back to home page...
  • Submit your press releases...
  •