The Final Word by Jim Thompson
Still doing fine
The PM40 has fallen from its heights reached earlier this summer, but that is as much due to the overall stock market malaise as anything. Field observations and contacts indicate the industry overall is still doing just fine.
Readers know I am a perpetual optimist about our industry. Sometimes over the last decade and a half, I have felt I am the only optimist. But underlying this, one must note that there is a basic modern need for all things cellulosic. Our failures in the past have often been caused by our desire to cling to old ways and not adapt to new markets and needs fast enough.
As for our recent past performance, I’ll share with you a chart that was discussed in “The Thompson Private Letter” a couple of months ago. To be fair to readers there, since they pay for their subscriptions, I’ll give only a brief explanation. You can pull it up by clicking here. The Coarse Packaging Companies are a group of “brown board” manufacturers listed in the PM40. Microsoft and Procter & Gamble are self evident. All were indexed to January 2000 = 100. Where would you want your investment money to have been if these were your choices?