Finweek English Edition - - KILLER TRADE -

If you had in­vested in Sappi to­wards the mid­dle of 2007, its rapid dive to 1 290c/share in 2008 would have left a bad taste in your mouth, es­pe­cially if you had hoped the fall wouldn’t steepen and kept the share in your port­fo­lio.

Even af­ter re­bound­ing to the 4 000c/ share level, the side­ways mo­men­tum from 2010 un­til last year would still have been ag­o­nis­ing. But hav­ing breached a key re­sis­tance level at 3 960c/share in Au­gust 2014, Sappi is look­ing to re­deem it­self and pos­si­bly re­coup all its losses.

Sappi had quite a bumpy ride over the past years, as it shut mills in Swazi­land, Fin­land, the US and the UK. Soon af­ter, it an­nounced plans to close two more: one in Switzer­land and the other in Port El­iz­a­beth.

This un­doubt­edly caused a frenzy, with fund man­agers bump­ing the stock at what­ever pos­si­ble cost, be­sides the fact that the out­look for the global pulp and pa­per in­dus­try at that time was al­ready un­cer­tain. The side­ways mo­men­tum fol­low­ing this drop in­di­cated that frosty in­vestor sen­ti­ment had thawed some­what.

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