Paperlinx shares were $0.058c yesterday, before shooting up
and briefly trading at $0.08c, this morning then slipping back to $0.073c at
lunchtime.

Yesterday Paperlinx spent the relatively minor sum of $1.1m
buying Cadorit, a Swedish sign and display supplies business. PaperlinX group CEO
Dave Allen told shareholders, “The acquisition of Cadorit is consistent with
the group strategy of expanding our revenue streams beyond our traditional
commercial print offering via organic growth and/or complementary bolt-on
acquisitions.”

Investors clearly gave the move into supplies the thumbs up, noting this is the third wide format supplies business Paperlinx has now bought

That strategy has seen Paperlinx buy Chris Lewis-Williams’ wide
format supplies business iMedia in Australia, then Canterbury Packaging in New
Zealand last year. Paperlinx sold off a dozen ill- performing businesses last
year. The new acquisitions have been funded by local credit.

Akllen says, “We are excited about the opportunity that
this acquisition brings to PaperlinX as it will provide a platform to becoming
a leading supplier of visual technology and packaging solutions in this region.”

The rise in the share price is of little cheer to long-term
investors, which have lost almost all their money since the onset of the GFC,
in Sept 2008 shares in the paper giant were trading at $2.40.

Latest figures show PaperlinX is still losing a handsome amount of money,
with a reported loss for the half year to December 2012 of $57.3m.

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