Most of you have probably heard about the local ordinance that will ban the use of petroleum-based plastic bags in the city of San Francisco. Reports state that the measure is likely to pass with the Mayor's signature. I will refrain from stating any opinion on whether I think the move is good or bad. What I want to mention about the likely change in West Coast grocery bag options is that I think this provides an opportunity for the snatching of some timely investments.
Quick! Find those companies that produce brown kraft paper roll stock and get a little chunk of them. When the bag measure passes, those companies might get a nice boost. You may wish to consider subsidiaries of (privately held) Koch Industries, International Paper (NYSE: IP), Kimberly-Clark (NYSE: KMB) or possibly Domtar (NYSE: DTC) (Toronto:DTC). On the local level, find the companies that are manufacturing brown paper bags for the West Coast market.
It is my personal opinion that this change in bag material usage will catch on fast, most especially on the coasts. Look into the shopping bag manufacturing field with a critical eye and watch this situation closely. If it looks like this shopping bag pony is going to "break out of the gate," I have a sneaking suspicion that this will be one pony that you want to ride!
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Reader Comments (Page 1 of 1)
3-30-2007 @ 12:20AM
no thanks said...
you are an idiot
4-08-2007 @ 1:57AM
Tom Konrad said...
Investors who are concerned about the reasons for the move away from plastic may want to stay away from Kimberly-Clark, which has usustainable forestry practices. Look for companies who are committed to Forest Stewardship Council cetification... of the ones you mention, the best is Domtar (which is no longer DTC but now has the ticker UFS after the merger with the Weyerhauser fine paper business.) Disclosure: I and my clients hold positions in Domtar.