Top 5 Paper Stocks For 2014

Things continue to get bubbly at SodaStream (NASDAQ: SODA  ) .

The stock hit a fresh 52-week high today -- closing in on its all-time high set two summers ago -- on reports of canceling an upcoming conference presentation.

CNBC's Herb Greenberg is tweeting that SodaStream shares are popping as word spreads that SodaStream won't be appearing as originally scheduled at Oppenheimer's 13th Annual Consumer Conference in two weeks.

In a statement to StreetInsider.com, SodaStream President Yonah Lloyd explains that SodaStream is coming off its successful investor day last month and recent marketing presentations by Lloyd in the Northeast, so heading out to Boston to present at the conference on June 25 would be overkill.

It's clear what the market's thinking.

Speculators are betting that there's some meat to the story that broke in Israeli's Calcalist daily business newspaper last week, citing an unnamed source that claimed that PepsiCo (NYSE: PEP  ) made a $2 billion unsolicited offer to acquire the company. SodaStream was reportedly trying to see if there was any rival interest from Coca-Cola (NYSE: KO  ) before weighing PepsiCo's proposal.

Top 10 Tech Companies To Invest In Right Now: Berry Plastics Group Inc (BERY)

Berry Plastics Group, Inc. (Berry), incorporated on November 18, 2005, is a provider of plastic consumer packaging and engineered materials. Berry owns 100% interest of Berry Plastics Corporation. Berry sells its solutions predominantly into end markets, such as food and beverage, healthcare and personal care. The Company operates in three segments: Rigid Packaging, Engineered Materials and Flexible Packaging. As of September 19, 2012, the Company supplied its customers through 82 manufacturing facilities throughout the United States (68 locations) and select international locations (14 locations). In June 2012, the Company acquired 100% interest of Frans Nooren Beheer B.V. and its operating companies (Stopaq). In September 2011, the Company acquired 100% interests of Rexam Closures Kentucky Inc., Rexam Delta Inc., Rexam Closures LLC, Rexam Closure Systems LLC, Rexam de Mexico S. de R.L. de C.V., Rexam Singapore PTE Ltd., Rexam Participacoes Ltda. and Rexam Plasticos do Brasil Ltda. (collectively, Rexam SBC). In August 2011, Berry acquired 100% interest of LINPAC Packaging Filmco, Inc.

Rigid Packaging

The Company�� Rigid Packaging business consists of containers, foodservice items, house wares, closures, over caps, bottles, prescription vials, and tubes. The end uses for these products are consumer-oriented end markets, such as food and beverage, retail mass marketers, healthcare, personal care and household chemical. The Company manufactures a collection of container products. The Company produces 32 ounce or thermoformed polypropylene (PP) drink cups and offers a product line with sizes ranging from 12 to 52 ounces. The Company�� products of house wares market is focused on producing semi-disposable plastic home and party and plastic garden products. The Company produces closures and over caps across several of its product lines, including continuous-thread and child-resistant closures, as well as aerosol over caps. The Company also provides a range of custom closure ! solutions including fitments and plugs for medical applications, cups and spouts for liquid laundry detergent, and dropper bulb assemblies for medical and personal care applications.

The Company competes with Airlite, Letica, Polytainers, Silgan, Aptar Group and Reynolds.

Engineered Materials

Berry�� Engineered Materials business primarily consists of pipeline corrosion protection solutions, specialty tapes and adhesives, polyethylene-based film products, and can liners served to a variety of end markets including oil, water and gas infrastructure, industrial and consumer-oriented end markets. The Company produces anti-corrosion products to infrastructure, rehabilitation and pipeline projects throughout the world. Products include heat-shrinkable coatings, single- and multi-layer sleeves, pipeline coating tapes, anode systems for cathodic protection and epoxy coatings. These products are used in oil, gas and water supply and construction applications.

Berry is the manufacturer of cloth and foil tape products. Other tape products include range of splicing and laminating tapes, flame-retardant tapes, vinyl-coated and carton sealing tapes, electrical, double-faced cloth, masking, mounting, original equipment manufacturer (OEM) medical and specialty tapes. These products are sold under the National, Nashua and Polyken brands in the United States. The Company manufactures and sells a portfolio of PE-based film products to end users in the retail markets. These products are sold under brands, such as Ruffies and Film-Gard. Its products include drop cloths and retail trash bags. The Company manufactures customized PP-based, woven and sewn containers for the transportation and storage of raw materials, such as seeds, titanium dioxide, clay and resin pellets.

The Company offers range of polyvinyl chloride (PVC) meat film and agricultural film. Berry�� products are used primarily to wrap fresh meats, poultry and produce for supermarket applic! ations. I! n addition, the Company offers a line of boxed products for food service and retail sales. Berry sells trash-can liners and food bags for offices, restaurants, schools, hospitals, hotels, municipalities and manufacturing facilities. The Company also sells products under the Big City, Hospi-Tuff, Plas-Tuff, Rhino-X and Steel-Flex brands. The Company produces both hand and machine-wrap stretch films, which are used by end users to wrap products and packages for storage and shipping. It sells stretch film products to distributors and retail and industrial end users under the MaxTech and PalleTech brands.

The Company competes with AEP, Sigma and 3M.

Flexible Packaging

The Company�� Flexible Packaging business consists of barrier, multilayer film products, as well as finished flexible packages, such as printed bags and pouches. Berry manufactures and sells a range of film products ranging from mono layer to coextruded films having up to nine layers, lamination films sold primarily to flexible packaging converters and used for peelable lid stock, stand-up pouches, pillow pouches and other flexible packaging formats. The Company also manufactures barrier films used for cereal, cookie, cracker and dry mix packages that are sold directly to food manufacturers like Kraft and Pepsico. It also manufactures films for industrial applications ranging from lamination film for carpet padding to films used in solar panel construction.

The Company supplies component and packaging films used for personal care applications. Berry is a converter of printed bags, pouches and roll stock. Its manufacturing base includes integrated extrusion that combines with printing, laminating, bagmaking, Innolok and laser-score converting processes. The Company is a supplier of printed film products for the fresh bakery, tortilla and frozen vegetable markets with brands, such as SteamQuick Film, Freshview bags and Billboard. The Company manufactures specialty coated and laminated produ! cts for a! range of packaging applications. Its products are sold under the MarvelGuard and MarvelSeal brands and are sold to converters who transform them into finished goods.

The Company competes with Printpak, Tredegar and Bemis.

Advisors' Opinion:

• [By Bryan Murphy]

  It's certainly not as big as Berry Plastics Group Inc. (NYSE:BERY). It's not even as big as Tredegar Corporation (NYSE:TG). There's one big way AEP Industries (NASDAQ:AEPI) can certainly compete head-on with BERY and TG right now, however... as an investment opportunity. Thanks to the bullish bump AEPI gave us last week, a long-standing selloff has been revered, and there's a whole lot of ground to make up.

• [By John Udovich]

  One of the most famous scenes in the cult classic, the Graduate, was when Mr. McGuire�took Dustin Hoffman�� character aside and said�"Ben, I want to say one word to you, just one word: Plastics"; but what about the Berry Plastics Group Inc (NYSE: BERY) and its performance verses that of the�iShares S&P 500 Index ETF (NYSEARCA: IVV), iShares Russell Midcap Index Fund ETF (NYSEARCA: IWR) and iShares S&P SmallCap 600 Index ETF (NYSEARCA: IJR)? I should mention that plastics and the Berry Plastics Group was not the place to be yesterday as the stock took a tumble on reduced guidance.

Top 5 Paper Stocks For 2014: Bemis Company Inc (BMS)

Bemis Company, Inc., incorporated on May 18, 1885, is a manufacturer of packaging products and pressure sensitive materials. The Company's business activities are organized around its three reportable business segments, U.S. Packaging , Global Packaging and Pressure Sensitive Materials. The majority of the Company�� products are sold to customers in the food industry. Other customers include companies businesses, such as chemical, agribusiness, medical, pharmaceutical, personal care, electronics, automotive, construction, graphic industries and other consumer goods. In July 2013, Bemis Company Inc acquired all of the common stock of Foshan New Changsheng Plastics Films Co., LTD.

The Company�� flexible packaging businesses has a technical base in polymer chemistry, film extrusion, coating, laminating, printing, and converting. The Company�� pressure sensitive materials business specializes in adhesive technologies. On August 22, 2012, the Company acquired two flexible packaging businesses in Australia and New Zealand.

U.S. Packaging segment

The U.S. Packaging segment represents all food, consumer, and industrial products packaging-related manufacturing operations located in the United States. This segment manufactures multilayer polymer, blown and cast film structures to produce packaging sold for food and personal care product applications as well as non-food applications. Additional products include custom thermoformed packaging, and multiwall paper bags. Markets for these products include processed and fresh meat, liquids, frozen foods, cereals, snacks, cheese, coffee, condiments, candy, pet food, bakery, seed, lawn and garden, tissue, fresh produce, personal care and hygiene, disposable diapers, agribusiness, and minerals. This segment has 35 manufacturing plants located in 16 states, of which 32 are owned directly by the Company or its subsidiaries and three are leased from outside parties.

Global Packaging segment

The ! Global Packaging segment includes all packaging-related manufacturing operations located outside of the United States as well as global medical device and pharmaceutical packaging manufacturing operations. This segment manufactures multilayer polymer, blown and cast film structures to produce packaging sold for a variety of food, medical, pharmaceutical, personal care, and industrial applications. Additional products include injection molded plastic and folding carton packaging. Markets for these products include processed and fresh meat, liquids, snacks, cheese, coffee, condiments, candy, bakery, tissue, fresh produce, personal care and hygiene, disposable diapers, agribusiness, pharmaceutical, and medical devices. This segment has 32 manufacturing plants located in three United States, the Commonwealth of Puerto Rico, and ten non-United States countries, of which 26 are owned directly by the Company or its subsidiaries and six are leased from outside parties.

Pressure Sensitive Materials segment

The Pressure Sensitive Materials segment is a global manufacturer of pressure sensitive adhesive coated paper and film substrates sold into label, graphic, and technical product markets. Products for label markets include narrow-Web rolls of pressure sensitive paper, film, and metalized film printing stocks used in high-speed printing and die-cutting. Products for graphic markets include pressure sensitive films used for decorative signage through computer-aided plotters, digital and screen printers, and photographic overlaminate and mounting materials including optically clear films with built-in ultraviolet (UV) inhibitors. Products for technical markets include micro-thin film adhesives used in delicate electronic parts assembly and pressure sensitive applications utilizing foam and tape based stocks to perform fastening and mounting functions. This segment has seven manufacturing plants located in three states and two non-United States countries, all of which are owned directly b! y the Com! pany or its subsidiaries.

The Company competes with Amcor Limited, Berry Plastics Corporation, Bryce Corporation, Exopack Company, Hood Packaging Corporation, Printpack, Inc., Sealed Air Corporation, Sonoco Products Company, Wihuri OY, Winpak ltd, 3M, Acucote, Inc., Avery Dennison Corporation, FLEXcon Corporation, Green Bay Packaging Inc., Ricoh Company, Ltd., Ritrama Inc., Spinnaker Industries, Inc., Technicote Inc., UPM-Kymmene Corporation, and Wausau Coated Products Inc.

Advisors' Opinion:

• [By Rich Duprey]

  Looking to increase its presence and market share in Asia, specialty packaging maker Bemis (NYSE: BMS  ) announced today it was acquiring a Chinese manufacturer of specialty films, Foshan New Changsheng Plastics Films.�

• [By The Part-time Investor]

  The following stocks met the criteria in January of 2008 and were put into the initial portfolio:

  Abbot Labs (ABT)Advanced data processing (ADP)Associated Banc-Corp (ASBC)Bank of America (BAC)BB&T Corp. (BBT)Bemis Company (BMS)Anheuser Busch (BUD)The Chubb Corporation (CB)Clorox (CLX)Comerica Inc. (CMA)Diebold Inc. (DBD)Emerson Electronics (EMR)First Dollar Corp. (FDO)First Third BanCorp. (FITB)Gannett Co, Inc. (GCI)General Electric (GE)Hershey (HSY)Illinois Tools Works (ITW)Johnson and Johnson (JNJ)Leggett and Platt (LEG)Eli Lilly (LLY)La-Z-Boy (LZB)McDonald's (MCD)Marsh and Ilsley (MI)M&T Bancorp (MTB)PepsiCo (PEP)Pfizer (PFE)Procter & Gamble (PG)Pentair Ltd. (PNR)Regions Financial Corp. (RF)Rohm and Haas (ROH)RPM International (RPM)Sherwin Williams (SHW)Sysco Corp. (SYY)UDR Inc. (UDR)

  Historical quotes were taken from Yahoo Finance. $10,000 was put into each position, to the nearest whole share, so a total of $349,262.89 was invested. From 1/15/08 through 5/16/13 all dividends were reinvested back into the stock that paid them. If a dividend cut was announced, that stock was sold on the ex-div date of the new, lower dividend.

• [By Jessica Alling]

  Leaders and laggards
  Merck (NYSE: MRK  ) is at the top of the class this morning with a 5.19% gain following some extremely encouraging news about its latest experimental drug,�lambrolizumab. Aimed at unleashing the powers of a patient's own immune system, the drug disables the immune system cells' prevention method that curbs its attack on cancer cells -- a protein called the programmed death 1 receptor, or PD-1. Merck's drug has shown a 38% rate in tumor reduction in patients with advanced melanoma, and up to 52% in patients who received the highest dosage of the drug. Though the patients have not undergone the trial for a long enough period yet, the results are attracting attention for matching the current treatments from two Bristol-Meyers Squibb (NYSE: BMS  ) drugs, Yervoy and nivolumab, with potentially milder side effects. The news is great for Merck investors, as the company has only played a small part in oncology treatments to date.

Top 5 Paper Stocks For 2014: International Paper Co (IP)

International Paper Company (International Paper), incorporated on June 23, 1941, is a global paper and packaging company, with primary markets and manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. The Company operates in four segments: Industrial Packaging, Printing Papers, Consumer Packaging and Distribution. As of December 31, 2012, in the United States, the Company operated 28 pulp, paper and packaging mills, 187 converting and packaging plants, 18 recycling plants and three bag facilities. Production facilities as of December 31, 2012 in Europe, Asia, Latin America and South America included 11 pulp, paper and packaging mills, 65 converting and packaging plants, and two recycling plants. It distribute printing, packaging, graphic arts, maintenance and industrial products principally through over 88 distribution branches in the United States and 32 distribution branches located in Canada, Mexico and Asia. As of December 31, 2012, it owned or managed approximately 327,000 acres of forestland in Brazil and had, through licenses and forest management agreements, harvesting rights on government-owned forestlands in Russia. On July 2, 2012, it sold Ontario and Oxnard (Hueneme), California containerboard mills to New-Indy Containerboard LLC, and its New Johnsonville, Tennessee containerboard mill to Hood Container Corporation. On January 3, 2013, it acquired joint venture partner, Sabanci Holding.

Industrial Packaging

International Paper is a manufacturer of containerboard in the United States. Its production capacity is about 14 million tons annually. The Company�� products include linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft. About 80% of its production is converted domestically into corrugated boxes and other packaging by its 178 United States container plants. In addition, it recycles approximately one million tons of old corrugated containers (OCC) and mixed and white paper through ! our 20 recycling plants. In Europe, our operations include one recycled fiber containerboard mill in Morocco and 20 container plants in France, Italy, Spain, and Morocco. In Asia, its operations include 19 container plants in China and additional container plants in Indonesia, Malaysia, Singapore, and Thailand. Its container plants are supported by regional design centers, which offer total packaging solutions and supply chain initiatives.

Printing Papers

International Paper is a producer of printing and writing papers. Products in this segment include uncoated and coated papers, uncoated bristols and pulp. This business produces papers for use in copiers, desktop and laser printers and digital imaging. End use applications include advertising and promotional materials, such as brochures, pamphlets, greeting cards, books, annual reports and direct mail. Uncoated papers also produce a variety of grades that are converted by its customers into envelopes, tablets, business forms and file folders. Uncoated papers are sold under private label and International Paper brand names that include Hammermill, Springhill, Williamsburg, Postmark, Accent, Great White, Chamex, Ballet, Rey, Pol and Svetocopy. The mills producing uncoated papers are located in the United States, France, Poland, Russia, Brazil and India. The mills have uncoated paper production capacity of approximately five million tons annually.

Pulp products include fluff, and southern softwood pulp, as well as southern and birch hardwood paper pulps. These products are produced in the United States, France, Poland, Russia, and Brazil and are sold around the world. International Paper facilities have annual dried pulp capacity of about 1.7 million tons.

Consumer Packaging

International Paper is a producer of solid bleached sulfate board with annual United States production capacity of about 1.7 million tons. Its coated paperboard business produces coated paperboard for a variety of packag! ing and c! ommercial printing end uses. Its Everest, Fortress, and Starcote brands are used in packaging applications for everyday products, such as food, cosmetics, pharmaceuticals, computer software and tobacco products. Its Carolina brand is used in commercial printing end uses, such as greeting cards, paperback book covers, lottery tickets, direct mail and point-of-purchase advertising. Its United States capacity is supplemented by about 365,000 tons of capacity at its mills producing coated board in Poland and Russia and by its International Paper & Sun Cartonboard Co., Ltd. joint venture in China, which has annual capacity of 1.0 million tons. Its Foodservice business produces cups, lids, food containers and plates through three domestic plants and four international facilities.

Distribution

xpedx, the Company�� North American merchant distribution business, distributes products and services to a number of customer markets, including commercial printers with printing papers and graphic pre-press, printing presses and post-press equipment; building services and away-from-home markets with facility supplies; manufacturers with packaging supplies and equipment, and to a number of customers, it provides distribution capabilities, including warehousing and delivery services. xpedx is the wholesale distribution marketer in these customer and product segments in North America, operating 108 warehouse locations in the United States and Mexico.

Advisors' Opinion:

• [By Diane Alter]

  Dividend Stocks That Increased Payout in September

  Accenture plc (NYSE: ACN) announced a 14.8%, or $0.12 per share, increase to its semiannual dividend. The management consulting firm will now pay a semiannual dividend of $0.93. Shares yield 2.53%. Agruim Inc. (NYSE: AGU) boosted its dividend by $1.00 per share to a total dividend of $3.00 on an annualized basis. Shares of the global retailer of agricultural products now sprout a 3.54% yield. Air Industries Group Inc. (NYSE: AIRI) doubled its dividend to $0.125 per share. The maker of airplane and helicopter parts now floats a lofty yield of 6.6%. Alexandria Real Estate Equities Inc. (NYSE: ARE) upped its dividend 4.6% to $0.68 per quarter for a yield of 4.21%. Banner Corp. (Nasdaq: BANR) boosted its quarterly dividend 25% to $0.15 per share. The parent company of Banner and Islander Bank serves the Pacific Northwest region. Brady Corp. (NYSE: BRC) lifted its quarterly dividend 2.6% to $0.78 per share. It was the 28th straight dividend increase from the identification solutions company. Shares yield 2.57%. Campbell Soup Co. (NSE: CPB) raised its quarterly dividend to $0.31 per share, up from $0.29. The company last raised its dividend in November 2010. Shares yield a hearty 3.06%. CLARCOR Inc. (NYSE: CLC) raised its quarterly dividend 26% to $0.17 per share. It's the largest percentage increase from the Tennessee-based diversified marketer of mobile filtration and packaging products in the last 20 years, and it continues the company's consecutive streak of increasing dividends for the last 30 years. Franklin Resources Inc. (NYSE: BEN) boosted its quarterly dividend 2.6% to $0.10 per share. Frisch's Restaurants Inc. (NYSE: FRS) increased its quarterly dividend 12.5% to $0.18. Shares yield 3.10% The Goodyear Tire & Rubber Company (NYSE: GT), in a move that suggests good times are ahead, reinstated its dividend at $0.05 per share. Good
• [By Dr. Duru]

  The U.S. Postal Service is engaged in a well-publicized battle for survival in this era of digitization. With the closure of its paper mill in Courtland, Alabama, International Paper (IP) has further underlined the inexorable drive of digitization. On September 11, 2013, IP announced the following:

• [By John McCamant, Editor, Medical Technology Stock Letter]

  SGMO continues to create strong intellectual property (IP), which is the core strength of the company. We also expect SGMO to continue translating their strong IP into solid revenue streams.

Top 5 Paper Stocks For 2014: Rock-Tenn Co (RKT)

Rock-Tenn Company (RockTenn), incorporated on September 20, 1985, is a North America's integrated manufacturer of corrugated and consumer packaging. The Company operates locations in the United States, Canada, Mexico, Chile, Argentina, Puerto Rico and China. The Company operates in three segments: Corrugated Packaging, consisting of its containerboard mills and its corrugated converting operations; Consumer Packaging, consisting of its coated and uncoated paperboard mills, consumer packaging converting operations and merchandising display facilities, and Recycling, which consists of its recycled fiber brokerage and collection operations. On June 22, 2012, the Company acquired Mid South Packaging LLC. On October 28, 2011, the Company acquired four entities doing business as GMI Group.

Corrugated Packaging Segment

The Company is a producer of linerboard and corrugated medium (containerboard) measured by tons produced and a producer of graphics pre-printed linerboard in North America. It operates an integrated system, which manufactures containerboard, corrugated sheets, corrugated packaging and preprinted linerboard for sale to industrial and consumer products manufacturers and corrugated box manufacturers. It produces a range of corrugated containers designed to protect, ship, store and display products made to its customers' merchandising and distribution specifications. It also converts corrugated sheets into corrugated products ranging from one-color protective cartons to point-of-purchase packaging. Corrugated packaging is used to provide protective packaging for shipment and distribution of food, paper, health and beauty and other household, consumer, commercial and industrial products and in the case of graphically enhanced corrugated packaging for retail sale, particularly in club store locations and retail sale. It also provides structural and graphic design, engineering services, and custom and standard automated packaging machines, offering customers turn-key instal! lation, automation, line integration and packaging solutions. It feeds linerboard and corrugated medium into corrugators, which flutes the medium to specified sizes, glues the linerboard and fluted medium together and slits and cuts the resulting corrugated paperboard into sheets to customer specifications. Its container board mills and corrugated container operations are integrated with its containerboard production used internally by its corrugated container operations. During the fiscal year ended September 30, 2012 (fiscal 2012), sales of corrugated packaging products to external customers accounted for 65.7% of its net sales.

Consumer Packaging Segment

The Company operates an integrated system of coated recycled mills and a bleached paperboard mill, which produces paperboard for its folding carton operations and third parties. The Company is a manufacturer of folding cartons in North America measured by net sales. Its folding cartons are used to package food, paper, health and beauty and other household consumer, commercial and industrial products for retail sale. It also manufactures express mail envelopes for the overnight courier industry. Folding cartons protect customers��products during shipment and distribution and employ graphics to promote them at retail. It manufactures folding cartons from recycled and virgin paperboard, laminated paperboard and substrates with specialty characteristics, such as grease masking and microwaveability. It prints, coats, die-cuts and glues the cartons to customer specifications. It ships finished cartons to customers for assembling, filling and sealing. It employs a range of offset, flexographic, gravure, backside printing, and coating and finishing technologies. It supports its customers with package development, innovation and design services and package testing services.

The Company manufactures temporary and permanent point-of-purchase displays. The Company designs, manufactures and packs temporary displays for sal! e to cons! umer products companies. These displays are used as marketing tools to support new product introductions and specific product promotions in mass merchandising stores, supermarkets, convenience stores, home improvement stores and other retail locations. It also designs, manufactures and pre-assemble permanent displays for the same categories of customers. It makes temporary displays from corrugated paperboard. It provides contract packing services, such as multi-product promotional packing and product manipulation, such as multipacks and onpacks. The Company manufactures lithographic laminated packaging for sale to its customers, which require packaging with graphics and strength characteristics.

The Company operates an integrated system of specialty recycled paperboard mills, which includes its Seven Hills Paperboard LLC (Seven Hills) joint venture. Its specialty recycled paperboard mills, excluding Seven Hills, produce paperboard for its solid fiber interior packaging converting operations and third parties, and its Seven Hills joint venture manufactures gypsum paperboard liner for sale to its joint venture partner. It sells its specialty recycled paperboard to manufacturers of solid fiber interior packaging, tubes and cores, and other paperboard products. It also converts specialty paperboard into book covers and other products. Its 65% owned subsidiary, RTS, designs and manufactures solid fiber and corrugated partitions and die-cut paperboard components. It manufactures and sells its solid fiber and corrugated partitions principally to glass container manufacturers and producers of beer, food, wine, spirits, cosmetics and pharmaceuticals and to the automotive industry. During fiscal 2012, sales of consumer packaging products to external customers accounted for 27.5% of its net sales.

Recycling Segment

The Company�� recycled fiber brokerage and collection operations provide a strategic advantage to its mills. Its recycling operations procure recovered paper (or! recycled! fiber) for its paper mills, as well as for third parties from factories, warehouses, commercial printers, office complexes, grocery and retail stores, document storage facilities, paper converters and other wastepaper collectors. It handles a range of grades of recovered paper, including old corrugated containers, office paper, box clippings, newspaper and print shop scraps. It operates recycling facilities, which collects, sorts, grades and bales recovered paper and after sorting and baling, it transfer recovered paper to its paperboard mills for processing, or sell it to the United States manufacturers of paperboard, as well as manufacturers of tissue, newsprint, roofing products and insulation and to export markets. It also collects aluminum and plastics for resale to manufacturers of these products. Its waste reduction services extract additional recyclables from the waste stream by working with customers. In addition, it operates a nationwide fiber marketing and brokerage system, which serves regional and national accounts, as well as its recycled paperboard and containerboard mills and sells scrap materials from its converting businesses and mills. Brokerage contracts provide bulk purchasing. Its recycling facilities are located close to its recycled paperboard and containerboard mills, ensuring availability of supply with reduced shipping costs. During fiscal 2012, sales to external customers accounted for 6.8% of its net sales.

Advisors' Opinion:

• [By Ben Levisohn]

  Shares of MeadWestvaco have jumped 4.6% to $37.29 today at 3:36 p.m. Other paper packaging companies, however, aren’t getting a boost from the news or from Merrill’s upgrade. Shares of Rock-Tenn (RKT) have dipped 0.1% to $100.34, International Paper (IP) has ticked up 0.1% to $48.74and Packaging Corp. of America (PKG) is little changed at $65.40.

• [By Saibus Research]

  Consolidation has been incremental in the paper and forest products industry. In May 2012, Resolute Forest Products (RFP) (formerly AbitibiBowater) announced that it had acquired 50.1% of Fibrek and acquired the remaining 49.9% in August. 2011 saw International Paper (IP) announce a hostile takeover of Temple-Inland and after offering $32/share in cash as well as the assumption of $600M of TIN's debt, IP was able to close the deal in February 2012. 2011 also saw Rock-Tenn (RKT) acquire Smurfit-Stone to create the number two player in the linerboard segment with 20% market share, trailing only International Paper's 40%. We see these moves as a prudent step to consolidation in the industry as certain types of paper such as newsprint and uncoated free sheet (office paper) are seeing falling demand due to increased use of digital resources.

• [By Dr. Melvin Pasternak]

  Although I still remain cautious because of fears of tapering by the Federal Reserve, I am again trading from the long side. One stock I am currently attracted to is Rock-Tenn (NYSE: RKT), an international paper and packaging company, which according to Bloomberg, sports the highest earnings per share (EPS) in its industry.