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Strategies & Market Trends : Mercer International (MERCS) -- Ignore unavailable to you. Want to Upgrade?

To: Andrew Wallace who wrote (134)	3/24/1998 12:42:00 AM
From: jacob husak	Respond to of 196

Mercer received their construction permit for the conversion to "Kraft" pulp and expansion from 160,000 tons to 280,000 tons. Great news if your in for the long haul. I was looking at last years annual report and they stated that a new 280,000 ton Kraft mill would cost $900,000,000. This conversion will only cost the company approx. $ 200,000,000. If you take a pro-forma book value of $700,000,000 divided by 14,900,000 shares you get a stock value of $47 per share. Further statements were also made stating that kraft pulp was worth an additional $ 100 to 150 per ton. At 280,000 tons of production we should have a company which could earn $ 2.00 eps. Anybody out there who can confirm these valuations?

To: Andrew Wallace who wrote (134)	3/24/1998 9:18:00 PM
From: mongoose	Respond to of 196

me either that buyer obviously got filled it has done this before after a big buyer has been around check volume vs. price i think its from traders going short in to volume[no nasdaq stock can go more than 30 to 40 % in short run because of this] it will be over soon its not real shorts just traders making a paycheck. look at some charts to verify my 30/40 rule this stock ran from 10 1/2 + 35% =14.17 hope this helps in the future its almost flawless see ya