Increased wood pulp costs affect all tissue manufacturers equally. Vertically integrated tissue producers will make more in the pulping stage, less in manufacturing; everyone will be scrambling to cost-out and raise prices.
AHY has other problems. They won't be workers or machines.
$310m in debt and MC of $460m = enterprise value $770m.
A writedown of intangibles looks next. AHY has $187m in goodwill and brands to zero out. The FY could be a shocker, depending on what else it writes down.
I am unconvinced all the bad news is out. SP still setting new lows today.
DYOR
Ash
ps. Love the business, at least conceptually.
AHY Price at posting:
79.5¢ Sentiment: Sell Disclosure: Not Held
