Replies to post #125101 on Value Microcaps Motherboard

[cl001]

I don't think we will see "pulp prices start falling precipitously" for a few years. The hedge fund is longing MERC 3.5 convertible carrying 12% interests while shorting the stock. It is a good trade. Similar trade exists for Tembec a month ago when its non-convertible bond was trading at big discount. I remember discussing it with a few hedge fund managers last month. I suggest to them not to hedge by shorting the Tembec commons shares because "it could explode". Tembec already up more than 100% for me and much more to come. It is my largest position by a wide margin.