Despite Its Steady, If Unexpected Climb, Stock Of Global Paper And...:
One of the market's big surprises is International Paper, one of the unlikely stocks that have led in this year's unrelenting market advance. The stock of the leading global producer of printing paper and packaging products has been a robust gainer, ramping up to 52-week high of $38.20 a share on Oct. 16, 2012, way up from $22 in September. No wonder many investors now think this unlikely winner in the current market rally has just about reached its peak. But don’t make the mistake of falling for that gloomy prediction. Remember that many investors had pronounced as dead the paper industry in general and IP in particular, in the dawning of the new digital world. In 2009, at the height of the recession, the stock plunged to a low of $3.90 a share. To paraphrase Rodney Dangerfield, it got no respect, and investors spurned International Paper. But the stock’s performance since 2009, when the financial meltdown and recession hit, was solid proof that the naysayers were wrong.
And even when IP posted somewhat disappointing third-quarter results based on some analysts’ expectations, IP believers stayed bullish on the stock.
