Nordic Amern Offshore Ltd Ordinary Shares (Bermuda)(NYSE:NAO)
Shares of Nordic Amern Offshore Ltd Ordinary Shares (Bermuda)(NYSE:NAO) were recently pounded after the shares fell into a liquidity crisis due to falling ship prices. It came to a point where it was apparently impossible for the company to issue shares as Nordic American Offshore maintained solvency but the company’s Executive Chairman Mr. Herbjørn Hansson is very conservative and initiated an effort to issue a total of 41 million new shares, making Nordic American Offshore the only pure-play provider who does not go against its initial debt agreements from debts issued during the financially stable years.
Mr. Hansson ploughed in a significant portion of his personal funds and he is hoping to increase the number of fleet. Many of Nordic Amern Offshore Ltd Ordinary Shares (Bermuda)(NYSE:NAO) investors were rightfully scared over errors in the company’ capital allocation. Despite the management making several errors, the company’s share is back strongly trading at $2.75.
As opposed to banks, several OSV shipping companies behave differently during financial crisis. Many big banks were severely affected as liquidity dried up and it became uncertain on who was solvent and who was insolvent.
One of the strongest points with Nordic Amern Offshore Ltd Ordinary Shares (Bermuda)(NYSE:NAO) is the simplicity in its analysis. The company currently has ten ships with an original cost of $365 million, $50 million in cash, $135 million in debt and around 60 million shares. This leaves equity of around $160 million or $2.50+ per share.
Nordic Amern Offshore Ltd Ordinary Shares (Bermuda)(NYSE:NAO) is expected to report its earnings on Jun 06, 2017. In the last quarter, the company reported $-0.48 per share in earnings. Analysts covering the company had predicted Earnings Per Share of $-0.4. The company reported a difference of $-0.08 per share between the projected and actual Earnings Per Share. This represents a -20% Earnings surprise.
Many of the analysts covering Nordic Amern Offshore Ltd Ordinary Shares (Bermuda)(NYSE:NAO) have predicted Average Earnings of $-0.22 per share. The analysts have also predicted a Low Estimate of $-0.27 per share and a High Estimate of $-0.15 per share.
A total of 2790 analysts have given Average Revenue Estimates for the company as 3000. According to many of the analysts Low Revenue Estimate for the company is $2.4 million and High Revenue Estimate is $3 million. In the previous financial year, Nordic Amern Offshore Ltd Ordinary Shares (Bermuda)(NYSE:NAO) reported $4.85 million in sales. One analyst has recommended a Buy, one has recommended a Hold. Many of the analysts projected a high price target of $2 with Low price target of $1.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.