IP

International Paper Co.

Industrial/Transportation


Presented:09/23/2020
Price:$39.27
Cap:$15.44B
Current Price:$47.74
Cap:$16.58B

Presented

Date09/23/2020
Price$39.27
Market Cap$15.44B
Ent Value$29.20B
P/E Ratio24.47x
Book Value$17.95
Div Yield5.22%
Shares O/S393.09M
Ave Daily Vol2,862,455
Short Int4.48%

Current

Price$47.74
Market Cap$16.58B
International Paper Co. engages in the manufacture of paper and packaging products. It operates through the following segments: Industrial Packaging, Global Cellulose Fibers, and Printing Papers. The Industrial Packaging segment involves in the manufacturing of containerboards, which include linerboard, medium, whitetop, recycled linerboard, recycled medium, and saturating kraft. The Global Cellulose Fibers segment offers cellulose fibers product portfolio includes fluff, market, and specialty pulps. The Printing Papers segment includes manufacturing of the printing and writing papers. The company was founded by Hugh J. Chisholm in 1898 and is headquartered in Memphis, TN.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), International Paper Co (IP)

Highlights

The presenter is short shares of International Paper Co (IP), believing the manufacturer of paper and packaging products is a classic value trap, with low demand and additional capacity coming online over the next 3–4 years. Given the capacity being added, he also thinks containerboard prices are likely to decrease, and that longer-term there will be a general move away from cardboard packaging. The presenter believes the stock has a 50% downside from its current price of $40 per share, but does note investors must live with volatility in the stock due to the monthly release of data, and rotations to value from time to time.

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Idea Discussion

Commentor 1 - 2 weeks ago

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