Dead Money, the Cycle is Vicious; Wait for the Recession (PT$60)
Failed mergers, an industry where consolidation and change are struggling to bring shareholders value. There's a lot to be wanting to try and keep up with the current "value" market. However, International Paper will struggle fiercely to try and impress. Lowest fib level is what demonstrates the inability of the company to break out. We've now plunged under it and there is little reason to try and capitulate on the decreased momentum to raise awareness and emotion.
Let IP do what it will. Let it ride out with all the volatility in 2018. Wait for at least three catalysts this year to prop it up and let it stop bleeding in 2019 and find a decent entry point. After that, if the easy money is gone and we enter more volatility or the first strings of the recession orchestra, know that the paper and corrugated industry are eternal until we find a better medium to make a box and print. Not recession proof, but when everything is down and ALL companies still need packaging materials, your friends at IP can do little to look grand.
Let IP do what it will. Let it ride out with all the volatility in 2018. Wait for at least three catalysts this year to prop it up and let it stop bleeding in 2019 and find a decent entry point. After that, if the easy money is gone and we enter more volatility or the first strings of the recession orchestra, know that the paper and corrugated industry are eternal until we find a better medium to make a box and print. Not recession proof, but when everything is down and ALL companies still need packaging materials, your friends at IP can do little to look grand.