NOL

NOL BIG Turn Around!

NOL is my favorite counter right now and I have personally invested a lot and will like to share with all brothers and sisters here.

I believe NOL will report a breakeven or even have a small profit after the last reporting year loss of US$731 million.

Freight volume in the first quarter of this year is very strong and estimated 700,000 FEU at ave freight rate of US$2520 as compared to 1^st Q2009 which NOL only shipped 481,000 FEU at ave freight rate of US$2474. I also made a comparison of 1^st Qtr of 2007; it showed that they shipped 581,000FEU at US$2520 and NOL had made a net profit of US$43 million. Presently we have a higher freight vol, same freight rate and with lower cost structure, don’t you think NOL will make money in this last quarter?

NOL’s comprehensive cost cutting measures and reduction of non recurring expenses. I believe these two main reductions will be reflected in the next quarter’s reporting, hence will compensate for the additional cost of the bunker oil. 

Most regional Liners have already reported a moderate profit. This is mainly due to increase in shipping volume and increase of freight rate next month. As reported the transpacific Stabilization Agreement is seeking an US$800 per 40foot box rates increase starting next month. NOL being one of the well known global Liner should not miss out at all.

As all of you might know, NOL is about 67% owned by our Temasek and they tried to privatize NOL some years ago but were not successful.  They might attempt to do so again when the time is ripe.

In conclusion, the downside at current NOL share price is limited. Buy now and let’s keep it till the next reporting and all of you will fly with me. UP! UP! All the way! NOL $3 here we come!

This only has meaning when stock is trending down.

NOL may reverse the trend in the short term.

http://mystocksinvesting.com/singapore-stocks/nol-shooting-star/