I noticed they have a target price of 17 cents. Therefore, they clearly still see value in the stock at current price levels even if it is an "underperform".
If Paperlinx can adapt to the change in market and position themselves away from the traditional paper market, and move more toward the promotional and packaging materials then if anyone has a good chance of coming good this company does. It has the Ferrari infrastructure and distribution networks, the only problem is that the road has fallen apart. Find another route and we could get this baby cranking again.
Clearly your traditional paper market is a dying industry. At the airport the other day I noticed more people are reading their books electronically. The local newsagent no longer around as people access news online. Amazon selling more books electonically than paper.
With the move from tradional shopping to online shopping, the packaging industry is flourishing. I am no guru in the paper industry however, it doesn take a genius to realise that selling traditional paper is like trying to flog Cd's when everyone is on itunes.
I still rate this company at current prices as they have the opportunity to move with the market and position themselves.
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