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Buckeye Technologies Inc. (BKI) – A Star of the Fiber Business

A stock that has tripled Earnings per Share during the uncertain last quarter of calendar 2007 needs no analyst support. What deserves careful examination, however, is the way management achieved this impressive result with just 14% gross revenue growth. There are three parts to the answer: a better product mix, selling price increases, and heightened cost effectiveness. These are all tough management decisions to implement.

Investors can look forward to watching this Paper & Paper Products Industry stock of the Basic Materials Sector, from Memphis, TN, continue to fare well. Plant maintenance and further product line trimmings could mean that business takes a transient dip during the first quarter of calendar 2008. However, prospects for the full financial year ahead are exceptional, particularly in the challenging stock investment weather of March 2008.

Cellulose is at the heart of this company’s business. Fiber is an essential starting material for a vast array of applications. Investors can rest easy with this stock, as the products it owns go into everything from diapers to engines. Though the company has products based on synthetic fibers, most of its revenues come from wood and cotton.

The stock fits well with a green portfolio. The company has manufacturing units in Germany, Brazil and North America. This means that investors can seek protection from the harm of a falling dollar by buying this stock now. The company does business in 60 countries, so it has many options in terms of global stability for its business fortunes.

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