April 01, 2011
– Comments (2) |
RELATED TICKERS: IP
That sure beats staying in a 10yr , 20yr or 30yr bond.
I think tossing your cash to the wind and hoping it makes its way back to you after circling the globe beats staying in a 10yr, 20yr, or 30yr bond.
IP is a dying company. They have zero growth ambitions...they've been selling off units, closing branches, and laying off employees consistently for years. I know a guy that worked for IP for 25+ years and was a mid-level manager before being laid off in 2006. He considers it a great blessing to have been laid off as he had been required to lay off friend after friend over the previous 5+ years and was miserable. The company is now smaller than it was 30 years ago when he started. He still talks to the few friends he has left at the company and is told that morale is terrible...most that haven't been laid off have left by choice. A company in a shrinking industry should trade with a low PE ratio...why would you invest in a company with no growth prospects?