Value Microcaps Food, Agriculture and Soft Commodities

[cl001]

My estimates for Q2 are $1.25 for TMB.to and $2.5 for MERC or annualized 5 dollar for TMB and 10 dollar for MERC. Both are currently trading at about 0.5 time earning. Q1 results will be out in a month that I hope it will confirm my vision. I am more confident on TMB earning than MERC because it is integrated, while MERC somewhat subject to input cost increase. For example, MERC uses whole log as some of its input, the management won't tell me the %, but the rise lumber price will hurt its earning somewhat. In the meantime TMB cut its own tree and even sell some lumber, so the rising lumber price is good for TMB.
Even I am off by 20-30% these two stocks have huge upsides left. If you agree with me on the huge upside, then you should like TMB more because MERC has 20 million shares of convertible due in 2012. When MERC gets into double digits, it can come into play and limit its upside.