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.
$2.12 (10/07/08)
