OCBC Investment Research in a Sep 9 research report says: "The group reversed six consecutive quarters of losses and posted a US$99.7 million profit for the quarter, lifting it to a net US$1.2 million profit for 1H10.
"NOL's swing to profitability surpassed expectations of both consensus and management, who had earlier anticipated losses to extend into 1H10. NOL expects its recovery to gain momentum in 3Q10 as the full impact of Transpacific rate hikes set in. According to management, 3Q10 freight rates have been buoyed by robust demand stemming from inventory re-stocking for the year end Thanksgiving and Christmas season.
"At 1.3x FY10F NAV, the stock is still trading below its valuations seen during the previous recovery phase in 2002-2003. Unchanged $2.41 fair value estimate. MAINTAIN BUY."