Having a market capitalisation of 38.08M as of 24 September 2014, Nordic is a relatively small company. Although it is a small player in the industry, its does not really have the competitive advantage in the industry. Therefore, the reason to buy is mainly due to its undervalued stock price.
The following is the EPS through the years.
| Year | EPS (cents) | NAV (cents) | Dividends (cents) |
|---|---|---|---|
| 2009 | 2.9 | - | - |
| 2010 | 2.3 | 9.4 | 0.53 |
| 2011 | 0.4 | 9.3 | 0.25 |
| 2012 | 1.1 | 10.2 | 0.25 |
| 2013 | 1.5 | 11.5 | 0.25 |
As you can see from the Table, the EPS has been improving for three years straight with the NAV increasing steadily. An additional bonus is the consistent dividends over the years. Based on the closing price of $0.097, P/E = 6.47, NAV = 0.84 and Dividend Yield = 2.58%
The low P/E and NAV ratio are really attractive, although "unpopular" stock usually command these low valuations. With the decent dividend yield, one can hold this counter for the long term and wait for the market to discover its true value. Given the small size of the company, Nordic might even be good for takeover play.
You can try to take advantage of the illiquidity of Nordic to get it on the cheap. At the current situation, Nordic has a Buy queue of $0.097 and a Sell Queue of $0.100. Try to queue low, and wait for sellers to hand the stock to you. If aiming for quick gain, similarly queue early to sell high. On some days, Nordic may have sink or spike sharply. Take those periods to grab cheaply or sell on gain.
Unfortunately, I sold all my Nordic shares recently to fund my exchange trip. Otherwise, I would have kept it for the annual dividend and/or wait for larger spikes to offload them.
