The directors of Paperlinx will now know they are not going to trade out of their problems.
They will be looking hard and straight at selling off Continental Europe businesses. However most paper companies are buying packaging businesses, so it could be harder than we think. It's an industry in termination.
But just prior to that decision to divest, they will look at the options of what else to do with a $4 billion turnover company......
.... Somehow China, and the emerrging markets will come into the melting pot. That brings me to our new substantial shareholder, what would he with all his skill and knowledge want with PaperlinX. He is an emerging company specialist, he has heaps of choices. Paperlinx is at the other end of the spectrum. Something must be on the drawing board.
I am totally convinced Paperlinx will show another sizeable loss for the 6 months to 31 Dec 2012. Not as high as the. $60 mil the in 2011, but still around $30 mil.
Q Does China produce very cheap paper? Do they want to sell $4 billion worth pa to the UK, Europe ... ? Tell them we are good at selling cardboard boxes as well. How can this be facilitated? Raymond G of Paddington can you enlighten me?
Otherwise is curtains.
SRS Price at posting:
5.5¢ Sentiment: None Disclosure: Held
