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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: paulelgin who wrote (46955)	3/9/2012 11:58:22 AM
From: E_K_S	Respond to of 78476

Hi Paul- STORA ENSO OYJ ADS (SEOAY.PK) storaenso.com Great find. Company appears undervalued according to the EK$ valuation criteria. Forward PE of 11.95, 4% dividend yield and a debt profile that is a bit higher than I like (but better than FBR) at 12X net income/LT debt. Their TBV is $9.72/share. My EK$ valuation figure using their 2011 earnings of $0.59/share is $11.36/share 55% undervalued from the current market price. This is a cyclical industry and is very capital intensive. Earnings can vary a lot over the business cycle so the EK$ value will too. That said, seems like a much better operation than FBR and holds a lot of valuable Forestry (above ground) assets. I am in for a starter position moving the proceeds from FBR into SEOAY.pk. Will add shares below $7.00/share or as the dividend yield approaches 5%. EKS

To: paulelgin who wrote (46955)	5/18/2012 10:11:52 AM
From: E_K_S	Respond to of 78476

Stora Enso Oyj (SEOAY.PK) Doubled up on my position in this wood products company. Yahoo shows BV at $9.53/share. Company is selling at a significant discount to BV. As all commodities fall, this one does too (they own a lot of land and trees). For me, still a good store of value and they do pay an annual divided (around April). It may get cut but if they maintain the current rate, it's around 12%. Looking forward, paper and paper products should still see growing demand especially from China (as they discover toilet paper). This stock is a good complementary stock to Kimberly-Clark Corporation (KMB) (which I also own but now selling at an all time high). May continue to add if stock tests lows about 10% lower from current levels. EKS