Clearwater Paper Corporation (NYSE:CLW)

In light of information given in today's conference call, the short-term trading opportunity was obviously a bad call.  Although there are multiple growth initiatives aimed at increasing production over the next several years, these same initiatives will have major costs associated with them and may affect the company's financials in the near term.  In a nutshell, most of the costs incurred will be related to manufacturing additional converting lines:

• 2 additional lines, at a cost of $30 million, expected to be complete by the 3rd Q of 2011; 40% of project costs will be incurred in 2010, and the remainder in the first half of 2011.
• The company is also considering a "TAD" machine that will take 2 years to build, costing over $100 million, excluding land and building costs.
• To supplement the TAD, 5 additional converting lines would be built costing a total of $40 million.
• Given all of this, cash dividends are being discontinued at least through 2010 (not necessarily a bad thing since the company is putting much stake in expansion opportunities)
• In 2010, converting lines will approximately double capital expenditures