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Strategies & Market Trends : Value Investing

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From: anializer2/7/2007 10:07:09 PM
   of 78745
 
It’s been getting tough to find good value stocks so anything that even resembles one is being looked at.
Scanning through a few charts this evening I came across MERC. A Wood Pulp Co. with Canadian and German pulp mills. Chart is hopeful. It broke out of a nice bottoming pattern in November. Analyst estimates range from a 16 cent loss to a 14 cent profit, which is in itself is a somewhat ambiguous wide range. But the consensus is $1.40 for FY ended March. PE on that basis is about 9X. Sells for 1.7X book and .5X sales. No goodwill, no intangible assets, no pro forma junk to contend with on balance sheet. Book is Book. Balance sheet in Euro is pretty clean and understandable.

mercerint.com

Chart shows a nice lateral up trending pattern since early December.

stockcharts.com[w,a]daolyiay[dd][pc13!c40!f][vc60][iut!ud20!uh14,3]

Any thoughts welcome. Dipped in for a bit today. Reports February 27.
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