Sappi - new broom

[DST]

This (eternal optimists') company has finally appointed a new MD - a guy from Imperial. He starts on 1 July, so an early job will be to publish on the quarter to June. Any bets he starts off by trying to "lower the base against which he will be judged" by reporting a dreadful recent past. If so, how will the price respond?

[Brazen]

LOL! Cynic.

[SimonPB]

The question is also with Mondi arriving next Monday how many people will switch out of dying sap and into much better mnd ?

[#4]

Dyin? Geez dude, it's made up nearly 140 percent since its low in April 2005 an its still steadily on upwards. This year it's only made 15 percent, but that takes into account a severe 26 percent pullback from Jan to March - not unexpected. Thing is, Sappi is a world player in fine coated papers; its main problem has been below inflation increases in its main market, the US, but seems to be overcoming this with cost management and lately, convincing customers that they are gonna have to pay more.

[DST]

World player.

Wow.

What is going to transform them into a world player which does well for shareholders? Has the ROE era ended (return on ego)? Why?

[SimonPB]

gravy, sure but my memory of sap is one excuse after another. economic booms should seriously benefit paper/packaging conmpanies - sap has pretty much missed out this bull

[#7]

True, true, but I figger the point is that the share, like the company, did so badly for so long, that even a slight improvement in margins has significantly benefitted the share price - so providing capital growth. Think of it as a kinda GFI with trees.

[DST]

What kind of trees, Gspot, bugweed? You are in my first pair of brackets above, and you may be right ... ...

[#9]

..green is the new gold, dude, the new gold..

[DST]

Well it could be, Gspot, but then wouldn't you far rather be in Mondi? Or will your Anglo hive-off give you enough/too many?

[#11]

Mondi grows trees whereas Sappi buys trees an turns em into paper. So two different industries, really. I reckon it's possible to hold both inna portfolio.

[Pam_1]

Will be nice to choose between Sappi, Mond and Nampak in this small sector. With renewable raw materials it will fly.