On the heels of the devastating
World Trade Center attack,
Americans developed a new fear in
the fall of 2001: their mailboxes.        After many in various states and
even then US Senate majority
leader Tom Daschle received letters
containing strains of deadly
anthrax, panic ensued. Ricin-con-
taminated mail was also sent to
prominent political figures. Paranoid people flocked to clinics and doctors’
offices in droves to score doses of Cipro, the covet-
ed antibiotic to treat exposure. Government offices
were shut down left and right for suspicious mail
arrivals. Hardware stores sold out of duct tape as
people furiously taped their windows to seal out
toxins.        The bioterror threat had gone mainstream.
       Today, as our troops remain in the Middle East
on their hunt for chemical and biological weapons, 9 www.taipanonline.com JULY 2004 tries. Coca-Cola North America named them the
“2003 packaging integration Supplier of the Year,”
saying, “12-pack sales have increased by a double-
digit rate and consumer excitement has been palpa-
ble. The Fridge Pack (Coca-Cola’s trademarked
name) is the most innovative packaging idea in the
soft drink industry since the contour plastic bottle.”        That’s a plaque that will look good in anyone’s
den, right above the wagon wheel coffee table and
next to the wet bar. The Fridge Vendor beverage
carton is so hot, Miller uses it as a unique selling
point in its national commercials. Fully patented Just in case you were wondering, GPK has the Fridge Vendor patent through its merger with
Riverwood International Corporation: US Patent
6,578,736, issued June 17, 2003.        The company has almost doubled this year,
climbing to an all-time high of US$6.78 based on a
93% gain in revenue. Net sales were US$575.9 mil-
lion for Q1 2004, compared to US$298.0 million in
Q1 2003.        GPK has a market cap of US$1.42 billion. Its
nearest competitor in size is Packaging Corp. of
America (PKG:NYSE). PKG has a market cap of
US$2.51billion on revenues of 1.74 billion. Those of
you who know how to divide will ascertain that this
equals a price-to-sales ratio of 0.72 for GPK versus
1.44 for PKG.        Our hero’s share price would have to double to
US$14.28 to equal the P/S value that PKG has right
now.        But wait, it gets better. PKG grew revenue a paltry
3% last quarter compared to 93% for GPK. Debt The company has a lot of debt (4.6 times equity) and is the creation of a merger a year
and a half ago. But interest rates are low and in
the most recent quarter debt declined and the
turnaround seems assured.        This is a bet that the current trends will con-
tinue. The stock is hitting all-time highs and its
three moving averages are equidistant and slop-
ing in a positive direction. This is our buy signal. Buy Graphic Packaging International Corp (GPK:NYSE) below US$8.00.  It is now trading at US$7.14. Contact: Graphic Packaging
International, 814 Livingston Court, Marietta, GA
30067, tel. 770-644-3000, fax 770-644-2962, email
investor.relations@graphicpkg.com, website
www.graphicpackaging.com. Next, page… This small-cap could soar as a US$5.6 billion
bill aims to wipe out deadly diseases SMA(20) SMA(40) SMA(60) GPK Daily 7.5 7.0 6.5 5.5 6.0 5.0 600
400
200
0 800 19    21    23    27    29   May   5      7    11   13     17    19    21    25   27   Jun    3      7       9    14    16    18 Erin Beale