“International Paper Co. (IP-$7.72) pays a dividend of 25 cents, which hasn’t changed in 13 years. It is still the largest paper and forest-products company in the world, and the weak world economy has beaten the stock to a pulp from its $33 high price this year. Well, there are a number of numbers that make this stock interesting. This company owns 300,000 acres of forestland in the U.S. and 250,000 acres of forestland in Brazil, plus “cutting rights” in Russia that can produce more timber than its Brazil properties. Meanwhile, even in this soft economy, Wall Street’s consensus indicates that IP will earn between $2.15 and $2.40 this year on revenues of $25 billion. That’s a profit-to-earnings ratio of less than 5; a book value of nearly $21 (which makes IP buyout bait) and its $1 dividend gives a new shareholder close to a 12.5 percent yield. I don’t like IP, and during the past 20 or more years, I could never warm to the stock. But whenever a big, healthy company trades so far below its book value, I begin to get interested. And IP is a big, healthy company. If there is a buyout (probably a Scandinavian paper company) I would guess that a price of two times book value would be fair. So I don’t have the slightest objection if you decided to purchase 500 shares of IP. I don’t think there’s any danger to the dividend, and I think the current price is scraping the bottom. I suspect revenues, while they may not rise over the next couple of years, will remain at the $24 billion or more level. IP seems to be a classy speculation.”

“Medco Group, an Indonesian oil and gas company, has recently begun construction of a wood-chip mill in a remote part of Merauke and plans to start building a 500,000-metric-ton-a-year pulp-and-paper factory in 2012. The plant would be Indonesia’s first large new mill since the 1997-98 Asian financial crisis and the first in Papua.
Modern Group, a local distributor of Fuji photographic equipment, is hoping to acquire land for a pulp mill in Merauke despite having no track record in paper making, a person familiar with the matter said. Modern Group declined to comment.
International Paper, of Memphis, Tenn., confirmed it has been in talks with Indonesia’s forestry ministry about establishing a large plantation somewhere in the country.”

“International Paper and the printing company RR Donnelley face upcoming shareholder votes on climate change resolutions filed by Domini Social Investments. Domini, a leader in the field of sustainable investing, has convinced five other major companies to take steps to preserve forests to address the threat of global climate change.”

“International Paper Co. spent nearly $2.5 million lobbying the federal government last year on trade, tax and energy issues.”