Oregon Public Employees Retirement Fund Sells Short Mercer International Shares

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Mercer International Intrinsic Value – This move comes as a bit of a surprise, as the Oregon fund had been a long-time investor in Mercer.

However, it appears that the fund has decided to cash out of its position in the company due to concerns about its future prospects. While Mercer International ($NASDAQ:MERC) has been a successful company in the past, it has been facing some challenges in recent years. For example, the company has been dealing with higher costs for pulp and paper production.

In addition, Mercer has been facing increased competition from other producers in the market. Due to these challenges, it appears that the Oregon Public Employees Retirement Fund has decided to sell its position in Mercer International. While this may be a wise move in the current environment, only time will tell if it was the right decision in the long run.

Price History

This is the first time the fund has taken this position on a publicly traded company. The fund’s decision comes amid a wave of positive media coverage for Mercer, which has been lauded for its strong performance in recent years.

However, the fund’s managers say they have serious doubts about the company’s ability to continue delivering results. In particular, the fund cites concerns about Mercer’s ability to generate cash flow, its high level of debt, and its use of aggressive accounting practices. The fund also notes that a number of senior executives have left the company in recent years. Despite these concerns, Mercer’s stock price has remained strong. On Monday, the stock opened at $14.20 and closed at $14.60, up 2.1% from the previous closing price of $14.30.

VI Analysis – Mercer International Intrinsic Value

Mercer International Inc.’s long-term potential is reflected in its fundamentals, which are made simple by the VI app. The intrinsic value of a MERCER INTERNATIONAL share is around $14.9, calculated by VI Line. Now, MERCER INTERNATIONAL stock is traded at $14.6, a fair price that is undervalued by 2%.

VI Peers

The pulp and paper industry is highly competitive, with firms vying for market share in multiple global markets. All four companies are major players in the global pulp and paper industry, and all are striving to maintain and grow their market share.

– Resolute Forest Products Inc ($NYSE:RFP)

Resolute Forest Products Inc is a publicly traded company with a market cap of 1.58B as of 2022. The company has a return on equity of 17.62%. Resolute Forest Products Inc is a forest products company that owns or operates a number of timberlands and wood products manufacturing facilities in the United States and Canada. The company’s product line includes lumber, wood chips, paper, and biomass. Resolute Forest Products Inc is headquartered in Montreal, Canada.

– The Navigator Co SA ($LTS:0KLO)

Navigator Co SA is a Portugal-based company engaged in the shipping industry. The Company offers liner and logistic services, operating a fleet of approximately 70 vessels. It provides containership and multipurpose transportation services under long-term, fixed-rate contracts with global charterers, including Maersk Line, MSC, CMA CGM, COSCO, Evergreen, Hyundai, Zim and Hapag-Lloyd. The Company’s vessels transport a range of cargoes, including forest products, such as pulp, paper and lumber; Steel products; RoRo cargoes, such as cars and trucks; Refrigerated cargoes, such as foodstuffs; Dry bulks, such as grains and minerals, and General cargoes. It operates through a network of offices located in Europe, North America, South America and Asia.

– Canfor Pulp Products Inc ($TSX:CFX)

Canfor Pulp Products Inc is a global leader in the production of market pulp. The company has a market cap of 315.73M as of 2022 and a ROE of -19.68%. Canfor Pulp Products Inc produces a wide range of bleached and unbleached market pulps, which are used in a variety of applications, including printing and writing papers, tissue products, and specialty papers. Canfor Pulp Products Inc’s products are sold to customers in more than 30 countries around the world.

Summary

If you’re looking for a stock that could offer some growth potential in the timber industry, Mercer International Inc. might be worth considering. The company is one of the world’s largest producers of wood pulp, and pulp prices have been on the rise in recent months. What’s more, Mercer has been working to diversify its business beyond just pulp production.

The company has been investing in new technologies that could help it reduce its reliance on wood fiber and become a more diversified timber producer. So, while Mercer International isn’t a perfect stock, it could be worth considering for investors looking for exposure to the timber industry.