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Old 04-30-2009, 03:58 AM   Nav to Top  #1
chuckd
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Big Smile CSAR Update Take Your Profits

I have been asked about CSAR today because it is my pick on the site watchlist. I am going to repost my write up from last week on the LVS Investing board. Let me say, that my target price has been reached and I sold out of my position ( 16K) They are supposed to release the results of their efforts to get their longterm debt refinanced by April30 I have not seen any announcement yet, but I assume that is the reason for todays run up. Here is a link to the other site with the full thread.
LVS Investing | Google Groups


Caraustar Industries, Inc. (Caraustar) is a manufacturer of 100%
recycled paperboard and converted paperboard products. The Company
manufactures products primarily from recovered fiber, which is derived
from recycled paper. Caraustar operates in four business segments:
paperboard, recovered fiber, tube and core, and folding carton. The
Company operated its business through 22 subsidiaries across the
United States and Canada. On January 1, 2008, Caraustar acquired
Canada-based Mayers Fibre Tube & Core, a manufacturer of construction
tubes, waxed void tubes, paper cores, plastic test cyclinder molds,
paper mailing tubes and metal end containers. On July 24, 2008, the
Company sold its 50% membership interest in Premier Boxboard LLC
(PBL), to its joint venture partner, Temple- Inland Inc

Caraustar Industries - Investor Relations - Stock Quote

Caraustar Industries: SEC Filings...

that last link is a transcript of their last conference call. It
contains all the most relevant information
about the company. They are liquid (35 mil) and are doing ok they just
have some long term debt to
re-finance. They have sold or closed their plants that were losing
money. Their margins are improving
due to lower supply cost and lower diesel fuel prices along with
layoffs and other cost cutting measures.
They are supposed to announce by April 30 about their debt. From what
I have read about them I think
that they are on the right tract to making money and surviving the
recession. I'm pretty confident that they
will get re-financed. This stock has been on my watchlist since last
year. I have too many stocks on my list
and I missed it when they went to .01 I noticed them the other day
because they dropped big for no apparent
reason. I bought 16K shares today at .11 and will buy more on any dips
below .10 The risk is that they are not
able to refinance. But read that last link, it is set up into like 5
short pages and you will get a pretty good idea
about their situation. I initially bought for the quick bounce that I
expected today, but after researching more
I may hold a while. I think the refi news sends them to .25-.35 I
think that they may actually show a small
profit this quarter. If a whole lot of you buy in, their office is in
Atlanta and I could go visit.

* Disclaimer - dont invest any money you cant afford to lose, because
I probably have no idea
what I'm talking about. lol

I would not chase this one past .16 or so, let it come to you.



On February 26, 2009, Caraustar Industries, Inc. (the “Company”)
amended its Senior Credit Facility, originally dated March 30, 2006,
with Bank of America, N.A. The Sixth Amendment to Amended and Restated
Credit Agreement (the “Amendment”) extends the March 1, 2009 date at
which time it is required to advise its participating lenders of its
plan to refinance or defease the Senior Notes in the amount of
approximately $190 million that are due June 1, 2009. The date was
extended to April 30, 2009. The Amendment also changed the applicable
margins in the pricing grid for the Senior Credit Facility.
Outstanding principal under the revolver initially bears interest at a
rate equal to, at the Company’s option, either (1) the base rate
(which is the prime rate most recently announced by Bank of America,
N.A., the administrative agent under the Senior Credit facility) plus
4.00% or (2) the adjusted one, two, three, or six-month LIBOR rate
plus 5.00%. Pricing under the Senior Credit Facility is determined by
reference to the pricing grid, under which margins shall be adjusted
prospectively on a monthly basis, commencing on March 1, 2009. Under
the pricing grid, the applicable margins for the revolver range from
4.00% to 4.50% for base rate loans and from 5.00% to 5.50% for LIBOR
loans. The undrawn portion of the revolver is subject to an unused
line fee calculated at an annual rate of 0.75%.

On Apr 22, 12:41 am, dawsonchuck wro

links to all their SEC filings
Caraustar Industries - Investor Relations - SEC Filings


to conclude, this stock has gone from .11 to .27 which was in my target range

It may still have some legs on a positive debt refinancing announcement and when they get it done I like them long, for all the reasons stated above, I sold out only because they met my objectives very nicely. If by chance they fall back down around .14 I will be a buyer again. Congratulations to all of you who followed me. Remember this one when I tip a loser. lol chuck
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Old 05-01-2009, 05:41 PM   Nav to Top  #2
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Thread Starter
Default CSAR Earnings

I have not read the whole report yet, but it appears that they have not yet been able to refinance their senior notes due in June. Here is a link, I hope you guys took your profits.
We may be able to buy in cheap again next week.

Caraustar Industries - Investor Relations - News Release
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Old 05-01-2009, 05:44 PM   Nav to Top  #3
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Thanks chuck. Keep us posted!
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