International Paper Company, #IP [NYSE]
Consumer goods, Production of paper and packaging, USA

Financial performance of the company:
Index – S&P 500;
Beta – 1.55;
Capitalization – 16.97 В;
Return on asset – 3.20%;
Income - 938.00 M;
Average volume – 4.69 М;
P/E - 18.51;
ATR – 1.03.

Analytical review:

  • The company ranks the third on capitalization in the sector of “Production of paper and packaging” among the issuers traded in the American stock market;
  • In the past three months, company’s shares rose by 28%. It is expected that the rise will continue;
  • At the end of April the company issued report for Q1 of the fiscal year 2016. According to press-release company’s revenue fell by 7.3% to 5.11 billion USD. In the reporting period net profit of the company fell by 7.7% to 0.80 USD per share. However, company’s financial performance was better than expected in the market, as the forecast of revenue was 5.096 billion USD and EPS (earnings per share) was 0.69 USD;
  • Currently, the company implements restructuring of its business. IP signed a contract with Xiamen Bridge Hexing Equity Investment Partnership Enterprise to sell assets in China and Southeast Asia for the amount of 150 billion USD. The deal includes the sale of 18 plants which employ over 3000 workers;
  • t is likely that in the near future company’s quotes will go up.

Summary:

  • Despite the decline in revenue and net profit, company’s financial performance was better than expected. The company has strong growth potential. Successful implementation of the restructuring plan will contribute to the improvement in the financial statements. Most part of the company’s shares belong to institutional funds;
  • It is likely that in the near future company’s quotes will go up.

Trading tips for CFD of International Paper Company.

Key levels:
Support levels: 41.65 USD.
Resistance levels: 44.00 USD and 46.75 USD.

Long-term trading, D1
At the moment the issuer is traded at the resistance level of 44.00 USD. After breaking out and testing of this level and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 46.70 USD, 48.50 USD and 50.80 USD with the use of trailing stop.

Long-term trading, D1
Long-term trading, D1

Short-term trading, М15
Yesterday the issuer started with the gap up, rising in price by 1.3%. If the price maintains the local support level of 42.80 USD, we recommend to open long positions. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 43.30 USD, 43.60 USD and 43.90 USD with the use of trailing stop.

Short-term trading, М15
Short-term trading, М15




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