Tuesday, March 17, 2009

International Paper Rallies almost 15%

International paper rallied 14.69% on 3/17. It rallied on monday as well, however the american express report brought about a massive selloff in the afternoon, erasing those gains. Management's refinancing of some of IP's debt has basically turned the sentiment on the stock positive and investors are betting on the stock appreciating in value. April and July 7.50 calls were heavily trafficked with investors taking on bullish positions. Closing at 7.26, our average cost for this stock is 8.36, and so our unrealized loss is a little more than 13%, compared to an unrealized loss of almost 65% when we doubled down when it was at the $4 level (2 weeks ago). The fundamentals of this stock have changed...for the better. I firmly believe this stock will be a tremendous gainer for us in the coming weeks/months.

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