Here's the deal: You may read the information on the site for free. As and when I have the time I'll add new articles, taking into account any questions which have been asked. For legal reasons, please do not consider anything on this site to be advice - the only free investment advice is to apply your own mind. If you want to request that an article be written, then email me. I have limited time available, and will prioritise the work accordingly, so please be patient. Email me at invest@freeinvestmentadvice.org.
Sappi share analysis |
2012-01-01
In 1990 Sappi decided it wanted to focus on becoming a global player in one area of the market, and that was durable coated paper.
Today its primary products are coated fine papers, but it also makes coated speciality papers, business papers, chemical cellulose, newsprint, packaging papers & paper grade pulp.
2013 |
The specialised Cellulose Investments come online. The Alfeld Mill will be converted from coated fine paper to speciality paper to take advantage of the fast-growing market for 1-sided coated paper used for packaging & labels. $170m expansion of the Cloquet mill in Minnesota. |
2012 |
Closure of the Enstra pulp mill & a 10000t kraft paper machine at the Tugela mill. |
Closures |
Over the last 3 years Sappi has closed mills in Finland, Southh Africa, Swaziland, Switzerland, the UK & the USA. |
|
|
2004 |
Bought 34% of Jiangxi Chenming Paper Company in China |
1998 |
Bought a controlling stake in KNP Leykam, a Dutch paper group, renaming it Sappi Fine Paper Europe |
Acquisition |
Acquired S.D. Warren Company, a leading US coated fine paper company (renamed Sappi Fine Paper North America). |
Sappi hasn't declared a dividend since FY2008.
In 1998 Sappi listed on the Frankfurt, London, New York & Paris stock exchanges (it delisted fromt he London Stock Exchange in 2009).
There may be structural decreases in demand as people go more & more electronic, using devices like ipads. As most of Sappi's sales are in the fine papers used in glossy magazines & catalogues, this is a particular concern to them.
On the other hand, demand for paper in emerging economies like China is growing.
Chemical cellulose is mainly used in textile manufacturing to make viscose fibre, a substitute for cotton. Sappi is the world's lowest cost & largest supplier of chemical cellulose, through Saiccor in SA. Sappi plans to convert its kraft pulp mill in Cloquet in the United States to produce chemical cellulose.
Due to regulations, our emails and this entire website should be considered as having been set up for entertainment purposes alone. Expect errors and omissions. Investment in shares and other financial instruments should be conducted by professional investment experts only. Any use of the information on my websites, emails and newsletters is at your own risk, and by using it you agree that the owners of our websites, authors and associated parties wont be held liable for any losses suffered as a result of using the information. None of the information should be construed as being advice. Our newsletters, articles, discussions and website are not an offering for any investment. It represents only our and others' opinions. Any views expressed are provided for information purposes only and should not be construed in any way as an offer, an endorsement, or inducement to invest. Illustrations, forecasts or hypothetical data are not guaranteed and are provided for illustrative purposes only. There are risks involved in buying or selling a financial product. Past performance is not indicative of future performance. Any investment values given are not guaranteed. Investment returns can be volatile. When investing there is always the risk of losing all or a substantial amount of your investment, as well as the risk of illiquidity. There may be advertisements on some pages on this website, and we may earn income from these advertisements. We may earn commission on products invested in or annuities purchased. We cannot attest to the accuracy of the material presented here, and opinions expressed may be changed without prior notice. In any event our liability will be limited to R1, and any court cases must take place in Cape Town. You may contact us at invest@freeinvestmentadvice.org