NOL

NOL: DBSV maintains Buy with $1.45 TP. HOuse note that losses in 4Q12 for NOL were higher than expected, but current freight rates have rebounded from 4Q12 lows. Think that the worst is over. After the slide in rates for much of 2H12, liners were able to push through spot rate increases on the mainlanes in late-2012/ early 2013, which means that liners started FY13 on a much better footing than in FY12. Spot Asia-Europe and Asia-US rates are currently about 30% and 20% higher compared to early December 2012. Liners are advocating further rate hikes in March-April. FY13F earnings are likely to benefit from lower cost base and better industry discipline.