Value Microcaps Motherboard

[kipp440]

OT - 6% increase in cardboard price coming.

In my real world job I buy cardboard boxes that hold 2 2.5 gallon jugs of liquid fertilizer (Zn, Fe, Mn). I emailed my Smurfit-Stone sales rep. and asked for current box pricing because I am working on bids. Here is the exact quote from his email:

"There are announcements made in September by all the major paper mills that paper will be increasing $30/ton in November. This equates to 6% if that happens.Let me know if you need me to fax you pricing. Thanks,Dave"

The jug price has gone from $.965 to $1.28 each!

We also use natural gas to spray dry and granulate liquid zinc sulfate to produce powder and granular product. Compared to last year our gas cost is up 65%, sulfuric acid is double due to long term contract expiring, and freight was up 30%. I have had to increase finished product prices 4 times and the total increase is about 35% over last year.

Now you guys tell me how the CPI core is up .1% Ex food and energy. What will a 6% increase in all paper cause prices to do? No wonder the size of the Wall Street Journal is going to shrink!

Anyway, from where I sit, I just don't see how we can have a robust, rosy, spend like there is no tomorrow winter.

I also read this article on credit card debt, holy smokes!

http://www.fool.com/news/commentary/2005/commentary05101311.htm?ref=foolwatch

I will ask my Smurfit-Stone rep to email me the paper price increase announcement if possible.

How can we just discount food and energy? Seems like sticking your head in the sand to me.

Sorry for getting off topic.

Kipp