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

To: Paul Senior who wrote (2939)	1/5/1998 9:18:00 AM
From: Jyoti sharma	Respond to of 78659

Paul, Regarding MERCS I do not have a lot, here is what I know: MERCS used to have a financial services business which they sold in 1996. Cash was partly used to upgrade their paper plants pay down debt. Insider ownership is 33% They have two paper plants one in Dresden makes paper products from recycled fibers. The other Zellstoff und Papier fabrik Rosenthal makes sulphate pulp. They have spent a lot of money upgrading these plants. MERCS also used to have a partnership with Korean Shin Ho group in Dresden plant I do not know its current status. They are very frugal with their money in a typical Swiss fashion. Obtaining information is very difficult about the company. Last year in March, I called Zurich several times and finally able to speak to some one in finance. He told me at that time they were going to focus on their paper and pulp business and 1997 was going to be a transition year. He never sent me an annual report. I speak German well and even then it was difficult to get detailed info from the company. Some how it appears they do not much care about the outside investors. Last two quarter results have been good and having invested in former East Germany they probably have tax breaks not shown on their balance sheet. I also like the idea of their walking away from Concert deal in Canada. I intend to call them again and hopefully find some one in Zurich who can provide information about their competitive situation. Good Investing Jyoti