STERV FH
Stora Enso Oyj
Industrial/Transportation, Event Driven/Special Sit
10/09/2013
Presented
| Date | 10/03/2013 |
| Price | €6.21 |
| Market Cap | $5.19B |
| Ent Value | $8.70B |
| P/E Ratio | 20.4x |
| Book Value | €7.78 |
| Div Yield | 3.27% |
| Shares O/S | 788.62M |
| Ave Daily Vol | 2,990,000 |
| Short Int | N/A |
Current
| Price | €11.21 |
| Market Cap | $9.84B |
| Stora Enso Oyj engages in the production and sale of biomaterials, paper, packaging, and wood products in Finland and internationally. The company’s Printing and Reading segment provides a range of office papers, including digital papers, document papers, business forms, envelope papers, scholastic papers, ink jet papers, and uncoated offset papers; and graphic paper products for art books, annual reports, luxury magazines, and brochures. It serves publishers, retailers, printing houses, merchants, converters, office suppliers, and others. Its Biomaterials segment offers fluff pulp that are used in diapers, Inco, and other hygiene products; dissolving pulp for the textile industry; and fibre grades of pulp. The company’s Building and Living segment provides various wood-based solutions comprising wood elements and housing modules, wood components, and pellets for supporting structures, interior design, and environmental construction. It serves construction companies, merchandisers, and retailers. The company’s Renewable Packaging segment offers liquid packaging boards, cigarette boards, and graphical boards, as well as general packaging boards for packaging cosmetics and luxury products, chocolate and confectionery, pharmaceuticals, and food; corrugated products, such as consumer packages, transport packages, grouped and retail ready packages, single faced corrugated board, corrugated sheets, and packaging systems and machines; containerboards; cores and coreboards; paper sacks, and sack and kraft paper products; and specialty paper products. Its Other segment provides forest management services; and produces electricity and heat. The company is headquartered in Helsinki, Finland. |
Stora Enso Oyj (STERV FH): Short (Long CDS)
Highlights
The presenter is bearish on the outlook for Stora Enso (STERV), the largest paper producer selling into Europe (and, 80% of revenue is from European markets). He sees the CDS as a good way to play the potential balance sheet deterioration that could come as cash is invested in the company’s joint venture with the Guangxi Forestry Group in Asia, and explained the headwinds facing STERV as follows:
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