Price Increases
We mentioned earlier that companies such as Dow and Clorox were raising prices on their products. Here’s another company (certainly not the only one) that’s passing on the costs, as well. Read below what this company makes, it’s not just tobacco related:
(SWM) Schweitzer-Mauduit International announces price increases to approach 20%, effective July 2008.
- These price increases are necessary to partially recover significant acceleration in costs caused by the combination of higher purchase prices for wood pulp, energy, chemicals and transportation along with the negative cost impact of currency.
From Yahoo Business Summary: Schweitzer-Mauduit International, Inc. manufactures and sells paper and reconstituted tobacco products to the tobacco industry. Its tobacco products include cigarette, plug wrap, and tipping papers used to wrap various parts of a cigarette; reconstituted tobacco leaf, which is used as a tobacco blend with virgin tobacco in cigarettes; reconstituted tobacco wrappers and binders for cigars; and paper products used in cigarette packaging. The company sells its products directly to tobacco companies or their designated converters in the Americas, Europe, Asia, and other regions. Schweitzer-Mauduit International also offers commercial and industrial products that include lightweight printing and writing papers, coated papers for packaging and labeling applications, battery separator paper, drinking straw wrap, filter papers, and other specialized papers primarily in the North American, western European, and Brazilian markets. The company was founded in 1995 and is headquartered in Alpharetta, Georgia.
Uhhh…Let’s repeat the pattern. (1) NASDAQ not doing well lately. (2) Not so great CPI reported pre market (3) An upgrade for GOOGLE saves the day on the NASDAQ.—Same tired script but it works every time.
June 13 (Bloomberg) — Banks led by Goldman Sachs Group Inc. plan to sell loans used in the leveraged buyout of Endemol NV, the Dutch television producer of “Big Brother,” for as little as 72.5 cents on the dollar, said four people with knowledge of the deal.
The lenders are offering 2.2 billion euros ($3.4 billion) of senior loans that financed the 2.6 billion-euro acquisition to investors, according to the people who declined to be identified because the information isn’t public. The amount that will be sold hasn’t been determined.
The price is more than 19 cents on the dollar below the average high-yield, high-risk loan, and comes amid a decline in the ratings for “Big Brother,” a show that films strangers living together in a house isolated from the outside world. Banks cut the backlog of LBO loans made before the subprime mortgage market collapsed and credit markets seized up in August to less than $100 billion from $350 billion by offering discounts.
I bought into TLB AUG $12.5 PUTS TROUBLED womens apparrel retailer. They secured a line of credit but no where near enough to cover BIG debt. http://www.cnbc.com/id/25124147/site/14081545?__source=yahoo%7Cheadline%7Cquote%7Ctext%7C&par=yahoo