Mercer International Inc. ($MERC) Confident Investor Rating: Poor

Company name Mercer International Inc.
Stock ticker MERC
Live stock price [stckqut]MERC[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Poor
EPS growth Poor
P/E growth Fair
EBIT growth Poor

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $0.28
Target stock price (averages with growth) $0.44
Target stock price (averages with no growth) $0.79
Target stock price (manual assumptions) $4.36

The following company description is from Google Finance: http://www.google.com/finance?q=merc

Mercer Inc. (Mercer) operates in the pulp business and is the producer of market northern bleached softwood kraft (NBSK) pulp. The Company's operations are located in Eastern Germany and Western Canada. The Company produces pulp for resale, which include market pulp in Germany. The Company operates three NBSK pulp mills with a consolidated annual production capacity of approximately 1.5 million air-dried metric tons. The mills include Rosenthal mill, Celgar mill and Stendal mill. The mills constitute to the Company's individual pulp mills segment. The Company manufactures and sells NBSK pulp produced from wood chips and pulp logs. During the year ended December 31, 2011, the Company's mills generated 652,113 megawatt hours, 520,005 megawatt hours and 478,674 megawatt hours, respectively, of surplus energy, primarily from a renewable carbon-neutral source. During the year ended December 3, 2011, the Company sold 652,113 megawatt hours and 520,005 megawatt hours of surplus energy.

 

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in this stock.

 

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