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Mercer International Inc. Message Board

  • jyardaag jyardaag May 12, 2011 2:51 PM Flag

    did you see the filing? MERC now provides 60,000 HOMES in Canada!

     

    with.. POWER.

    dont get headfaked this is the real deal.

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    • Personally, I like the energy sales because;
      1/ the gov't is paying all the capital costs
      2/ it now generates almost enough revenue to pay ALL the interest cost on MERC's debt. MERC's debt is significant and if we can convince the gov't to pay our capital outlay and use the revenue to pay our debt, while keeping all the operating profits from NBSK sales to ourselves (not spent on interest), than I figure MERC is much, much better off (ie. less risky) with electricity sales than without it, even if it is a small % of revenue.
      3/ MERC has fixed rate contracts with the gov't that is not related to NBSK pricing with almost no credit risk.

    • peter_norths_proctologist peter_norths_proctologist May 15, 2011 7:29 AM Flag

      I can understand your excitment about the profitability of harvesting energy from the wood pulp process. That's all well and good. But do you see it ever becoming 20% of their total business or more? If it stays under 20%, it seems this stock will always be at the mercy of NBSK price cycle. Wouldn't you agree?

      BTW, did you see this analyst report that came out last week? Was posted on stockhouse:

      http://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=29711185&l=0&r=0&s=MERC&t=LIST

      1) I'm awake all night sometimes.

      2) I try to avoid biotech stocks.

      3) The user name "Peter_North" was already taken, so I improvised.

      4) I'm not strictly a chartist. I just use them to pinpoint my buy and sell points, and gauge the general health of a stock. This one is still in a long-term uptrend, but a short-term downtrend (until further notice).

    • The presentation states that the overall Celgar power generation of 600GWh would be roughly enough to supply 60K houses. It doesn't state that they do provide that amount. Most of the power produced is consumed by the mill. MERC only sells about 38% of its energy production.

 
MERC
11.45+0.03(+0.26%)Aug 31 4:00 PMEDT