Hi °C | Lo °C SMURFIT Kappa's US operations are embroiled in a court wrangle over a love triangle which may end up costing the company upwards of €8m in damages.
While the case is undoubtedly titillating and involves a defendant who rejoices in the wonderful name of Carlos Leal Ponce, the big picture is that things are going well for Smurfit Kappa these days.
Shares were trading at five-year highs yesterday as the company posted another set of results that suggest the company has been able to defy the recession.
It is currently using its powerful position to push through price hikes, which bodes well for profits in 2013.
The company has recently completed a bond sale which brought the balance sheet under control, has cleared the the private equity 'overhang' and is paying a dividend that yields 3pc. What's not to like?
Owning Smurfit shares has never been for the faint-hearted. They are a play on the economy and the strange dynamics of the paper industry but with shares still trading at a 30pc discount to peers, it is not surprising that Smurfit remains one of Davy's top picks for 2013.
Irish Independent
