Orchids Paper Products Co. (NYSE AMEX:TIS)

Conference Call Note:

The GeoTeam participated in the TIS conference call conducted at 11:00 AM EST on February 26, 2009.  The company did a good job addressing the following comments contained in its third quarter press release:

"We have seen softening in the parent roll market, both in price and demand, primarily due to a weakened away-from-home market. In order to balance our inventories, we expect to take some downtime on our older machines during the first quarter of 2009. The amount of downtime we expect to take is not completely clear at this time due to the uncertainty of the timing of the recovery of the away-from-home market; however we do not expect it to be significant."

It seems that this comment may have caused some investors to sell their TIS positions.  However, the company did address the parent roll situation on the call implying that the negative impact on their business willll be minimal.   As of the fourth quarter the parent roll business is less than 15% of revenues and decreasing.   Also, the contribution of this business to the bottom line is less than the larger more profitable conversion business.  The company's focus for the future is to grow their conversion business which, as confirmed on the call,  was still strong and growing.  The company seemed optimistic about the coming year.

Please see Orchids Paper updated valuation scenarios.