Nordic Amern Offshore Ltd Ordinary Shares (Bermuda) (NYSE:NAO) Trades Huge Volumes and Stays Steady

Nordic Amern Offshore Ltd Ordinary Shares (Bermuda) (NYSE:NAO)

Nordic Amern Offshore Ltd Ordinary Shares (Bermuda) (NYSE:NAO) shares experienced volumes that were over five times their average daily volume figures. However NAO ended the day unchanged. On February 24, 2017 NAO shares dropped almost 49% when Nordic Amern priced a 40 million share offering at $1.25. Since then NAO shares have rarely seen action over $1.20.

Nordic Amern Offshore Ltd Ordinary Shares (Bermuda) (NYSE:NAO) owns and operates ten platform supply vessels that cater to offshore oil platforms. Nordic Amern operates the supply vessels in the United Kingdom and in the Norwegian areas of the North Sea. All ten of their vessels are on medium or long-term charters.

Remarkably, only five employees are listed as working directly for Nordic Amern Offshore Ltd Ordinary Shares (Bermuda) (NYSE:NAO). The analysts’ consensus target price is $1.50. Given the defined medium and long-term contracts that bind Nordic’s fleet, it is credible that analysts, knowing industry multiples, have set a target price above which would require speculation on the future of the industry sector or the company in specific.

Nordic Amern Offshore Ltd Ordinary Shares (Bermuda) (NYSE:NAO) had just $1.3 million in sales in 2013 but that number improved in 2014 to $52.8 million. However in 2015 sales declined to $36.4 million. In 2015 a reversal of fortune occurred for NAO shareholders. In 2014 a EPS profit of $0.34 was posted.

Morgan Stanley and Seaport Global follow Nordic Amern Offshore Ltd Ordinary Shares (Bermuda) (NYSE:NAO). One rates NAO shares as a “Strong Buy”. The other rates the shares as a”Hold”.

3/22/2017
Ticker Symbol NAO
Last Price a/o 4:00 PM EST  $                      1.20
Average Volume                    539,700
Market Cap (mlns)  $                    72.80
Sales (mlns) $26.10
Shares Outstanding (mlns) 60.67
Share Float (mlns) 38.17
Shortable Yes
Optionable Yes
Inside Ownership 0.00%
Short Float 3.31%
Short Interest Ratio 2.34
Quarterly Return -58.57%
YTD Return -55.56%
Year Return -72.77%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Author: Marcus Anderson

Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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