Sunday, March 28, 2010
West Coast Paper Mills
Paper industry gets a near-term boost. From a recent article in Business Line
“Pulp prices firm up as supplies from quake-hit Chile are hit. Over 4 mt a year of pulp production capacity damaged in the earthquake in Chile. Since March first week, hardwood pulp prices have gone up by $100-150/t to $850. Softwood pulp has appreciated by $200 to range around $1,000. In January, international printing and writing paper prices were $180 but it is now $330. Tamil Nadu Newsprint, Seshasayee Paper and JK Paper to benefit……Nearly 4 lakh tonnes a year of paper capacity will go on stream with APPM adding 75,000 tonnes and West Coast Paper Mills and TNPL adding about 1.50 lakh tonnes each.”
I like West Coast Paper. Buy in 54-56, where there is support.
Sell opportunity at 64-66 and 73-75
Risk: Can go down to 45 if market becomes weak.
The weekly chart indicates that the stock has support in the 50-55 range.
Labels: Stock
by Admin at Sunday, March 28, 2010 |
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