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short seller James Chanos fan.
  • Resolute Forest Products And Paper Market 0 comments
    Feb 14, 2013 8:02 AM | about stocks: RFP

    In the coming years the sale of tablets and other e-book readers will increase in parallel to an increase in the availability of electronic books, newspapers, magazines and catalogs.

    The paper will be gradually abandoned also for environmental reasons.

    From the 2012 balance sheet of ("Resolute Forest (NYSE:RFP)"). :

    Newsprint1627M$ sales

    Coated Papers(magazines, catalogs, books, retail advertising,direct mail and coupons) 455M$ sales

    Specialty (books, retail advertising, direct mail, coupons and other commercial printing) 1107M$ sales

    Pulp (tissue, packaging, specialty paper products, diapers and other absorbent products) 814M$ sales

    Wood Products 500M$ sales

    For the above-stated reasons, in my opinion, the sales in these 3 segments will decrease rapidly in the coming years.

    The first three segments (Newsprint,Coated Papers,Specialty ) are then 70% of the SALES for Resolute Forest.

    This is the reason why I believe that Resolute Forest is a company doomed to decrease its value unless it rapidly reconverts to alternative areas.

    Disclosure: I am short RFP. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

    Themes: short-ideas Stocks: RFP
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