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; TERRACE — ~ Buy or sell? - ,

: When it. comes to: stock i ings
Repap, the parent’ company,to ..
Skeena Cellulose, two. opinions: .

greatly differ.

+ One recent analysis. tecoi- 7
inends not-ibuying: while: the .

other: says” the ‘sompany dsa-

tisky investment but one that

gould pay. off,
1. That ‘first’ “analy

Analysis Corp. of Toronto:

It, Specializes in examining a
company’s: bottom’ line: by ap:

and other principles to come up
with what's called’ a’ ‘solvency
theory; *. -° e

That's different from. ‘other,

more traditional: ‘analyses which

base recommendations on-mak-
ing a profit'by taking a.risk.~
“We look! at “debt ‘and the.

ability to ‘service it,” explained —
corporation official Ross Healy

last week,

SAC’s look at Repap is mare .
than gloomy. It predicts a break.

up of the.company. ‘because of
its high debt load: *-

‘“‘We apply our. rules iri a:

cold, very. objective manner, "
said Healy, oy.
“Unfortunately i in the case LOF
Repap, the news isn't good and
we have had a devestating track.
record with companies’ that

have dire ‘financial problems .

and get worse. Repap is in that
condition at the present time.”. .

The problem with Repap is
that the debt it’s accumulated
can't be sustained by what it is
earning. i.

Although Healy hasn't work-
‘billion. Repap spent.in‘the last

"five years on modernization and: 5 en
‘expansion. That may. be debt,” |
- but--the cequipment .in. place |
“makes the: company: very effi: 7
cients |
“The company’s 970,000 ton: -

ed on a specific prescription for
Repap, three general principles
apply, he said.

“Tt must: ‘turn: its: debt: ‘into.

equity, sell’ assets or it will have
to restructure by downsizing
and cutting costs,” said Healy.

is" con-
ducted - ‘by SAG: ‘Solvency

» sald,. ;
oh ‘There: is the. ‘force. ‘of pers Bee
sonality, -but I can’t see how. it

-all: comes. down . to. the sam

- Healy. : \

But that debt load and the. af
‘ability of George Petty takes on-
a different tinge with the second:

‘stock: ‘But another. Says:

potentially attractive in vestment.,-

we One fi naicial anabsis says don't: buy, Repap

the company. is risky but

note, ‘of, cautloni. by: saying that , E

“neg being: ‘bled to: ‘deathi by
‘its, “debi: ‘position, '” he con-.

< tinued,»
> Healy’: ‘dost: credit “Repap’. @ é
“founder, ‘chairman. and majori-.-
ty . shareholder. ‘George . Petty.

with’ assembling: the: company
but notes there have been other.

_ here salar
plying:a. series of. mathematical gases whet individuals.

have. failed,

Sd Hike to. be able ‘to: say,
_ something ° good..and positive
‘but FE can't unless the company,”
. unléss George Petty. does. the

things that have to ‘be done, " he.

can be done. Gosh. In the end it:
thing. Yourun out of gas,” said. :

analysis, produced ‘as one of a

fea of (coated paper) capacity is

_the- most modernand produc-

-tive. cin: the. industry,” : the...

At. refers’ ‘to: "George Petty ‘as
ity ‘true entrepreneur,”

‘and. lumber manufacturing
. facilities in BiC.,. Manitoba, |
New Brunswick and. ‘Wisconsin...
: Its -Skeena Cellulose: ‘sub-
sidiary, opetates: mills here and
in Smithers and the: ‘pulp mill at
‘Port Edward.-
», The analysis does introduie a.

: Founded -in~ 1978,. Reve pat
"under Petty has pulp and. paper, :«

en sim,

Repap's ‘total ‘interest - bearing ©
debt.to . shareholders’ - equity ©.
makes. its.one of -the. most.”
- leveraged companie in th in-
‘diistry.,-; =

And. the amount of floating
“debt also makes-earnings yery....{
_seusijive to, changes :in interest ;

4,:the analysis add Lo

Vou. can get. ‘fre confidential advice, when

Workers’ Ad a

—.To: make: an: Appointment. for a peréonal Inter
|

view, call. the, Goven ment ‘Agent's
383200. «

: As with ther. major. orest.
products companies, Repap. is:
coming, off. bad year. - a
This ‘month, “it aintiounced a:
third-quarter: net. ‘loss: of $41.9:
million” compared . to a $4.5.
- Million net income for. the same.
_ period in- 1990. ; ws

package. by..RBC. Dominion |?

‘ Securities i in Vancouver. re
a “Repap, gs'a major Producer,

of high grade’ coated: papers,

7 should: ‘be at'the forefront” of. | -
‘improving ‘American = i
: economy, it states. i. on

:_4*The shares are recommend:

Union votes ‘yes’

Ee i Fane ;
LCE us Uinioaizea on-air

Erma a ate

and clerical’ employees at

.Skeena ‘Broadcasters. have
ratified’ a two-year agreement °
. with the company. © -
More thaia 90 per ( cent of the

approximately 40.people in the’
National Association of Broad-
cast Employees and Technicians
bargaining: unit voted in favour,
said union local. president
Gls dys. Atrill,:

e deal gives employees
wage increases of 3.5 per cent in
each of the two years. .

It, also provides’ for . starting

wages that are lower than the |.

ones in the previous contract,

And the contract: lengthens
the number of years it will take
employees to move up the salary
vid.

previously voted 80 per cent in

~ favour-of a strike. .
“The. ‘union. entered. tegotia- :
tions asking for’ five’ per cent in...

each year ofa two-year deal:

Skeena. Broadcasters: countered |.”
with a 28-month ‘offering: of - |
three per cent increases every. a

months. ier
Althouigh the: ‘previous

tract ran out-the end of-July'the —
- Dew one is effective Nov. 23), the: ;
‘date of the vote.:~:: “s
. That means there is no provi:
. sion: for retroactive, increases
‘Atrill said, 7

“Hopefully © in: two years

“things will be. better,” said |
"Atri of the agreement. een ae

alae

an

eda Tage RR

Th was reached ‘after | _
two dat of ialks ‘with 'a federal"; *
labour : conciliator. : ‘Employees

_ ef only. for those clients willing J.
-to absorb the relatively high risk = J)
attached to these shares,” ‘the .
; analysis continues, ; | Pe { of , naaatl “_
- Listed as a strength is the $2.3. Pee,

: Festung a ‘delicious variety of shrimp dinners: Come:
‘in and:taste our delectible crab stuffed shrimp.

vt Pe wo uh

oy Eight. Hlump-Black Tiger Shrimp. topped with crab:

» nest, swiss cheese and Beralse sauce, or broiled.”

‘one-skewer Souiviakl, or sauteed with green pepper
‘and onions. (Your choice or rice or baked Potato)

~ * Luneh Moa. Fri. 11:30 - "2:00 pm
a Dinner 4:30 - + 1#:00 pm

“0. ROR RESERVATIONS CALL | 77]
638-0644. or 638-1 503.
4402 Lakelae sti 3 Terra ace; B.C.

” Skeena Ballroom
. *..Daluxe'Prime Rib Dinner’
1 Music By: ‘Dan's Musicat Varieties”
Late Night Snack, Party, Favours &- Prizes
- $60.00 Couple = $30, 00 Single”

GIGI’S PUB ~
“Baron of Beat" Buffet. =.
. Party TH 3: 00 A:M. — $20.00 Per Person
= - Music By: ‘{Vendetta”* - “
> Tickets Available’ at Front Desk:

4551 Grelg Ave., Terrace, B.C.

- Open 7 days a week.

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