Saying, we took a beating after we purchased Nekkar ASA (NKR.OL) for 3 NOK would be an understatement. Shortly after our purchase, the company announced a major legal dispute with the buyer of a division it sold earlier - and the amount claimed was VERY significant. Not surprisingly, the share price dropped 50% - ooouch.
After we recovered from our shock, we looked at the business we had purchased and still liked it. So we decided once the share price started to recover we would double down on our investment - averaging our buy price down to 2.45 NOK.
Since then the share price has steadily increased.
51% gain on Nekkar ASA (NKR.OL)
Now we find ourselves 51% up on our total investment and feeling pretty good. We still like the business, so we are not selling. But Nekkar ASA (NKR.OL) is not out of the woods yet as that legal dispute has still not been resolved. Lets hope it is not a last minute knock out punch.
Nekkar ASA is headquartered in Bergen, Norway and listed on Oslo Stock Exchange with the ticker code NKR.
Nekkar's business is organized in the following four business areas:
* Syncrolift Shipyard Solutions
* Digital Solutions
* Offshore Energy and Renewables
Syncrolift is the main business
Syncrolift offers turnkey and customized solutions for shipyards and navy bases around the world. The product range includes shiplifting systems for launching and retrievals of vessels, transfer systems for a fast and reliable way of moving vessels around the yard, FastDockingTM products for efficient operations during docking and maintenance of vessels, and service and upgrade capabilities related to the company’s product offering.
Syncolift products and services
We like the company has a nice backlog and with the strong performance of shipping companies at the moment - we think the future is bright.
The order intake in 2019 has been very strong, and the market situation through first phase of 2020 seems promising, although the full consequences of the turbulent corona virus and increased currency volatility is unclear. The ongoing business is running well, and despite “rough waters” and some obstacles related to various governments restrictions related to the corona pandemic, we believe the all- time high order backlog will ensure high activity levels near term. Interim revenues and EBITDA will however fluctuate due to timing effects in project execution normally due to delays related to circumstances outside the control of Syncrolift.
As I said above, we still like the business and are going to hold onto our investment
Not investment advice
As always, this is not investment advice. Do your own research. Consult your professional advisors.