Short Term Long Idea: $MERC – Here is why I went long $MERC

On Friday (6/3/2015), I bought $MERC while travelling hence couldn’t post it real time to my followers.

Here is why I went long $MERC:

– Mercer International Inc. owns and operates a diverse pulp and paper business in the southern German states of Saxony and Thuringia, in the former East Germany. The Company operates it’s pulp business primarily through its subsidiaries, Spezialpapierfabrik Blankenstein GmbH and Zellstof-und Papierfabrik Rosenthal GmbH & Company KG , and conducts its paper business through another subsidiary, Dresden Papier GmbH

– This is a momentum play. Its charts are doing very well lately and its worth my attention (since mid Jan)

– Earnings results are excellent. The last two quarter results, it beat the estimates 226.47% and 12.20% respectively.

– The sector is currently in very good shape

– $MERC is clearly the best in sector (especially other players such as $UPMKY and $RKT)

– It desperately wants to touch to $15 mark – All indicators show that it will do it very soon.

– Insider Buys in January and February – expect more to come before the next earnings announcement.


Long $MERC 6.3.15 – Price bought: $13.91
Target Sell: ~15.40s (Depending on momentum, I might exit just around $15)