Ashland needs to MOVE OUT of the Paper Making Chemicals Segment - Think Kodak Film Business!
Ashland needs to MOVE OUT of the Paper Making Chemicals Segment as fast as possible.
A huge change will occur in the next 7 years paper usage will DROP at 10% per year for the next 10 years in the USA and EU
It's not a matter of which segments ASH is in. The basic issue is King Jim's entire lack of understanding of how to grow anything organically. Let me see, what, actually has he grown in his career at ASH? Oh, yeah, now I remember, EAGLE ONE! ;-) While commoditized as compared to 30 years ago, water treatment -- industrial, waste water -- all water -- offer plenty of opportunity for profitable growth, as do the other ASH businesses. But, as far as I can tell, not one single Sr. ASH leader knows how to do, other than acquisition. Which, as the numbers are showing, now that the ISP is fully integrated on a year over year basis, not even Specialty Ingredients is really growing.
ASH either needs to acquire something else big, or, bring in some people who can get it done. Oh, I forgot about the Growth Office, and the Chief Growth Officer -- let me see, what exactly has he grown? ;-)
Wow.... so people are going to stop wiping their back sides, stop using paper towels and stop shipping things in boxes.... Good luck wiping your you know what with a email an soaking up a spill with an Ipad. What are you going to use to wipe your nose? Your ignorance of the paper market is obvious. There is more to paper than fine paper.
There you go, now you blew it. Now Jim will get into the paper making chemicals business even more since you told him to get out because he is too arrogant to take good advise. But at least your intentions were good.
It doesn't matter, show us the cash net inflow from this segment in the coming 5 years, if NPV and payback point the right direction, do it, or this entire management is dismissed. This is the only way to value the management fairly. We need the management to put 50% of their salaries as "Withholding"on the stake before any acquisitions. If the synergy/cahs inflow can be materialized in 5 years, their paysshould be up 200% of current pay or will be dismissed without any compensation, and 50% of their pays will be treated as capital surplus for existing shareholders. This will ensure the management knows what the consequency of screwing shareholders.