Domtar Corp. (USA) (NYSE:UFS)

CAPS Rating: 5 out of 5

The Company manufactures and sells fine paper, including uncoated free sheet and coated groundwood.


Player Avatar dapo100 (< 20) Submitted: 3/12/2008 9:17:54 PM : Underperform Start Price: $33.37 UFS Score: +46.77

The merger between old Domtar and the fine paper division of Weyerhauser is not going well.

Even if the two companies were selling paper, the 2 business models were different- production, distribution, supply chain, etc. Aligning the two will take time and huge amount of money supposing they know which direction they going and what will the operational model. The CEO and COO are only focusing on the current merger, there is no-one planing for the future since they will be both retiring in a year or two. There is no clear plan, for example, how to bank in on the current US dollar depreciation and starting massive exports and distribution throughout Europe. The market is only shrinking and they do continue to do same things, the old way. How do you expect you will make profits with this company?

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