Friday, December 24, 2010


NOL: secures US$926m financing for its acquisition of 12 new container ships worth US$1.2b, which are expected to be delivered from 2012 through 2014. Remainder of financing needed will come from an earlier bond issue and internal resources. Net gearing expected to increase from 0.22x to 0.53x (level not seen since 2003)…

Recent Street ratings mostly at Buy or Hold, with targets ranging $2.41-2.55.
Technically, counter is still in a longer term uptrend, although it has dipped ~8% since peaking in early Nov in view of softer freight rates in seasonal 4Q. Indicators still pointing downward, but prices are near the $2.10 support, which may be a possible entry level. 200MA at $2.05 has held since Jul ’09.

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