Tuesday Morning - Paper, get your paper.

Gator's Chart of the Day: IP

International Paper Co. is a leading indicator of economic activity.  They produce paper (duh) and packaging materials that are essential for moving products.  When their business is strong it means manufacturing and shipping of goods is healthy and likely to continue at the same or an increasing rate.

The stock closed Monday within 6 cents of a multi-year high and volume was nearly twice that of Friday.  The forward P/E is under 12 and the short ratio is 2.4.  BMO Capital Markets reiterated it's "outperform" rating and raised the target from 48 to 56.

The Trade 
An initial buy of a 1/3 position between 40 and 41 with a stop just under the 20 day sma looks to be a good start.  If the stock clears 41.25 with good volume I would make a 2nd buy.  This is not likely to be a fast moving stock so I would wait a day or two (or more) to fill the position.  Earnings are 1/29 before market.