retiredIP

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    • International Paper Beaten to a Pulp: Time to Buy? [view article]
      I would stay away from IP stock. IP has seen its heyday and that day is long past.

      In July '05 CEO Fracci announced a 'tranformation' (short for downsizing)plan for IP. IP owned at that time 6.7 million acres of land in the US alone plus lands in Brazil and lands in Russia (long term timber lease). IP placed the entire US land base up for sale and this was sold in April '06. This was at that time the largest single transfer of privately owned land since the Louisiana Purchase. IP did retain acerage of approximately 900,000 acres which had huge real estate potential, and IP has been steadily selling these lands since.

      One of the reasons for the 'transformation' was to retire debt IP was carrying from the merger with Union Camp in 1999 and the acquistion of Champion Paper in 2000. Ironically IP CEO John Fracci stated in a conference call when announcing the 'transformation' plan that IP paid "too much" for Champion Paper.

      So IP finds itself in the same positon today as they were in 2005, in debt and a stock price that is virtually worthless.

      CEO John Fracci has run IP into the ground in my ever humble opinion, has taken a once great company and weakened it to the point it will never return to its former glory days.

      I would stay away from IP stock, for one: bad leadership under Fracci and two; he promised in '05 once the timber lands were sold IP stock would double in two years. It is two years later and IP is still a in the dumps.

      Look at investing with IP only after CEO Fracci had been repalced.       May 06 08:19 PM
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