Verso Paper Corp (VRS) has been under intense pressure relating to excessive debt and a lack of paper orders. A slight improvement could touch off a sharp reversal in fortunes, however, as many competitors are now gone. Debts have been re-negotiated and are no longer so serious.

A discussion on GDP and the FOMC report, inflation as a theme for the second half, shareholder voting rights and brokerage influence, and more earnings related ZachStocks gains.

Long-time readers of ZachStocks may remember the days when IPOs used to be priced and profit could be made quickly depending on how deals were trading.  In June of 2008, we urged caution on Verso Paper (VRS) shortly after the company began trading.  In the article we noted the slowing demand for direct mail coated [...]

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   Verso Paper  manufactures and supplies coated papers to catalog and magazine publishers., basically a business in a dying industry which sells its product to two other dying industries.  It has a lot of debt and very little equity.  The recent strength of the dollar is hurting them.  Ospraie and other hedge funds have been liquidating their positions, putting pressure on the price.  The 5.9% yield will only get bigger. The August 10Q paints an ugly picture as cash is dwindling and both accounts payable and receivable are piling up.  This company is a good candidate for bankruptcy, especially given the current credit environment.