(This is an excerpt from an article I originally published on Seeking Alpha on September 15, 2013. Click here to read the entire piece.)
The U.S. Postal Service is engaged in a well-publicized battle for survival in this era of digitization. With the closure of its paper mill in Courtland, Alabama, International Paper (IP) has further underlined the inexorable drive of digitization. On September 11, 2013, IP announced the following:
{snip}
I took particular note of IP’s claim that the digitization of publication, billing, and communication is accelerating. {snip}
{snip} Miller notes that while digitization is hurting the uncoated freesheet business it is helping the linerboard business {snip}
Miller added that IP has made two related acquisitions that strengthened its linerboard business (Weyerhaeuser and Temple-Inland). He also noted that IP tried to salvage the plant by exporting to growth markets but was ultimately unsuccessful in building this into a sustainable business. Clearly, these markets are growing toward the mainstream of the digitization age.
{snip}
Source: FreeStockCharts.com
{snip}
Be careful out there!
(This is an excerpt from an article I originally published on Seeking Alpha on September 15, 2013. Click here to read the entire piece.)
Full disclosure: no positions