An inside-the-box holiday stock
International Paper has turned itself into the most important container board company in the world -- just as e-commerce has exploded.
Over the last five years, International Paper (IP) has turned itself into the most important container board company in the world. It did so in the nick of time because e-commerce is about shipping things that would normally be thrown into a bag at the store. Now those same products are more than likely to end up in a linerboard package that would very likely be made by IP, at least once the Temple Inland (TIN) deal closes.
Everyone is worried about this company and the potential collapse of world trade if Europe goes bad. Instead they should be looking at what will happen when the lowest cost producer of a commodity suddenly gets an uptick in sales, and what that does to the bottom line.
That's where we are now with IP, as it is by far the lowest-cost producer and its numbers factor in about a 1% growth in the business. No more than that.
If we do see any pickup, a monstrous amount of that money will fall to the bottom line. In the interim, you are being paid to wait with a hefty 3.7% yield and earnings estimates that I believe it will have no problem meeting.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.
BEWARE the shyster had the ceo of IP on his show.....do your research and you will find that
within 6 months there is a huge probabiliy of this stock gapping down
hey puppet boy......i dumped my OIH at 127 the day you recommended oil services
MAN WOULD I LOVE TO COMPETE WITH YOU PICKING STOCKS......IT WOULD BE LIKE
THUMPING A DEAD PERSON...........QUIT PROSTITUTING YOURSELF TO YOUR OWNERS
Jimmy, you are the dump on the news guy , thanks for being schizophrenic , it's really easy to make a buck off you, with that red nose and oversized shoes, hey, let that fringe of hair grow a little longer, and you can be Bobo the Clown, in looks and actions . slip and fall , but make a buck doing it . Bet against , what you say ,go jimmy go., hasta nunca
It all makes since to me but because it came out of you mouth?????????????
CLUE FOR CLOWN MAN..........4 PERCENT YIELD DOES NOT PROTECT YOU FROM
A GAP DOWN ...............IF A PERSON MUST BUY AN INDIVIDUAL STOCK WITH ALL
OF ITS IMPOSSIBLE TO KNOW RISKS IT SHOULD BE PROPERLY HEDGED WITH
OPTIONS ...........YOUR STRATEGY OF LOSING LESS WITH HIGH YIELDERS IS STILL
LOSING.........SHOULDN'T THE GOAL BE TO WIN WHETHER LONG OR SHORT?
i know i'm repeating myself but beware of IP ..........the unfunny clown had the venerated ceo
on his program last night so a gap down is coming
Regardless of what people think of Cramer or the quality of his advice, it's good to see him and others start to push investment in second and third tier Internet companies. Why is it that only Silicon Valley investors understand that the Web and all its iterations are where the growth is? Just because the investment analytics and algorithms don't fit traditional analysis doesn't mean we shouldn't be encouraging all those investors who have some $9 trillion tucked in their mattresses to get involved. The sooner...and the bigger...the better.
Copyright © 2014 Microsoft. All rights reserved.
Traders might want to bite on BABA, but long-term investors have reasons to wait.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.