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[sharechat] CAH - a good buy??

From: "Ben Dutton" <>
Date: Tue, 31 Oct 2000 10:44:12 +1300

I'd like to hear from people that follow CAH whether they regard the company
as a good buy at its current levels (On a cursory examination it would seem

Their parent company, International Paper, was up over 8% in the U.S.
overnight, following a re-rating by DB Alex Brown analyst, Mark Wilde, from
"buy" to "strong buy".

Here's what a Reuters report said:

"Mark Wilde, a DB Alex Brown analyst, raised his ratings on several
forest-products stocks. Analysts have lowered paper stocks' 2001 earnings
estimates in recent weeks, and those revisions have already been worked into
share prices, Wilde said.

Bowater was a favoured mid-cap paper stock as a "relatively clean 'paper
play,'" Wilde said in a note to clients.

The rating on International Paper, the world's No. 1 paper and wood products
company, was raised to "strong buy" from "buy" by Wilde.

"It's hard not to envision a decent rebound over the next several months,"
because although the sector faces three or four difficult quarters with the
risk of meaningful price pressure, paper stocks typically begin to
outperform three to 12 months before a cyclical bottom in commodity prices,
Wilde said."


Does this line of thinking also apply to CAH?  They are sitting on a heap of
cash, but there have been log pricing issues and Franklin Resources is
shedding its stake in the company.

CAH is up 4 cents as I write this, following on from IP's gains.

Look forward to hearing your comments.

Best Regards

Benjamin Dutton
(Disc. do not own CAH)

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