If you can't see the tie between these two you are blind. Goldman downgrades to $6 and sell and now Cramer follows up with a sell and $4 aint low enough.
Faraci meanwhile lays limp hiding under the the salad bar.
And best of all, Faraci still on the payroll.
Lets see you finance geniuses engineer your way out of this one. I say you all get together and drink some Jimmie Jones Koolaid.
I'm a newbie to IP. Not invested at all... though I've had my lumps in my other investments... which tend to be in solid companies that have been hammered collaterally with the general market malaise.
Are you saying that IP epitomizes dysfunctional investment capitalism?
Would you say that IP is destined for the dustbin, thanks to the Information Technology ("IT") revolution?
There is so so much paperwork... and no end in sight for its need. But perception isn't reality.
Although you say they are a money making machine, I do not beleive they make that much money based on reveunues, they will need to sell an asste that has value. Selling what no one wants or makes no money, does not work. No one wants to buy them, so you sweeten the pot with something of value.
You forgot Bags, Recycling and Graphics Packaging. All 3 of these have a sale tag on them now. Just waiting for a buyer. Problem is no one wants them and no one has the cash. Maybe someone will take John's position and offer to pay for them in stock. He can then turn around and use that to do the 401K match. The employees would love it, anybody's stock is better then IP right now.
The writing is on the wall. The company will be sold off, it is is just a matter of time. I only hope is comes under the guidance of a bankruptcy court that can terminate the executive compensation contracts. Paying these bozos to wreck the company and then golden parachuting the idiots would be the last scene in a classic tale of how to ruin a company and getting paid millions to screw the stockholders. This is what is wrong with our system. No accountability!!!! And to think Faraci is currently paying lobbyist to stop excessive executive compensation reform. It is truly unbelievable.
I have seen this coming for years and said so here. I don't think it will help to shoot the messengers. It's just bad management in a shrinking sector. There's plenty more bad news en route to us for the paper industry. The "crime" is in the fact that they kept managing the paper when they should have been managing the money. There is no excuse for that.
"The Street" (Cramer):
We've downgraded paper and packaging company International Paper from hold to sell, driven by its generally weak debt management, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
IP's debt-to-equity ratio is very high at 2.9 and currently higher than the industry average, implying very poor management of debt levels. Its 0.9 quick ratio illustrates its inability to avoid short-term cash problems. ROE greatly decreased compared with the same quarter last year, a signal of major weakness. IP's 17.6% gross profit margin is rather low, having decreased from the year-ago period.
Shares tumbled 85.5% over the year, underperforming the S&P 500, and EPS are down 632.5% compared with the year-ago quarter. Naturally, the overall market trend is bound to be a significant factor, and in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.