Newsprint Index

Description:

"It is hard to find truly out-of-favor assets in the stock, bond, commodity and real-estate markets, because a rising tide of liquidity has swelled values everywhere in recent years. Newsprint, however, is a notable exception, and shares of the two leading North American newsprint producers -- Abitibi-Consolidated and Bowater -- are among the most unloved investments around...Those with a little love to spare might be surprised by the bull case for both stocks. As in many depressed industries, it involves consolidation, as well as growing foreign demand. On Jan. 29, the two companies announced merger plans, which, if approved by shareholders and antitrust regulators, will create the third-largest public forest-products company in North America."

From Barron's 4/2/07

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