::The Center for Paper Business and Industry Studies::

080104 Deutsche Bank Report - Dr. Paper's Weekly Wrap Up (1/4/08)

Deutsche Bank - Equity Research

* A “super cycle” in pulp? Join DB for a call with Brian McClay of the Market Pulp Monthly on Thursday, January 10 at 11:00 am. The call will review global pulp markets & last no longer than 45 minutes, including a Q&A session.

* DB placed a $31 target price on the new Temple-Inland. At $18.82, TIN looks like among the best values in the sector. Current price implies a cautious value for the Corrugated Pkg business and no value for Building Products.

* Wausau looks very appealing. With $410MM market cap & $131MM in net debt, EV is $541MM. We think WPP's Bay West Towel & Tissue division (LTM EBITDA of $68MM) is worth more than EV. Wausau also owns timberland and $900MM of sales in Printing & Writing and Specialty Papers. Will the Board unlock value by restructuring WPP?