The Spinoff International Paper (IP) spun off 80.1% of its stake in Sylvamo (which I’ll refer to by its ticker; SLVM) on October 1st, 2021. The distribution ratio was 11 IP shares to 1 SLVM share. As of 7th January, IP retained its 19.9% stake in the new firm, but plans to exit completely within 9 months.
One concern should be that 20% of shares overhang owned by International Paper. But once that is disposed of it will be a big net positive. So question is buy now, or in a year?
Interesting company, but the high debt levels are concerning. In the past I've considered investing in navigator (the European market leader) but ultimately i came to the conclusion that these commodity businesses have margins that are too thin to justify the capital expenses.
Still, I'll see if i keep an eye on this company in the future.
One concern should be that 20% of shares overhang owned by International Paper. But once that is disposed of it will be a big net positive. So question is buy now, or in a year?
Interesting company, but the high debt levels are concerning. In the past I've considered investing in navigator (the European market leader) but ultimately i came to the conclusion that these commodity businesses have margins that are too thin to justify the capital expenses.
Still, I'll see if i keep an eye on this company in the future.