MY RATING ON NORDEX: AVOIDTechnically, the chart looks very bearish. The upside momentum disappeared when huge private placement was done at a discount to the market. Fundamentally, the stock is not cheap either. Whether you look at earnings per share or return on equity the stock is overpriced. The quality of management is very suspect. Weak, self, serving board, and weak CEO. To be honest we could not find any credentials that in our view would qualify Jim Taylor to be a CEO of any quality company.
Myself and my investors were scoping investment opportunities in Canada for about three years. We bought two major banks, Imperial Oil, Enbridge and Transcanada. We also scanned virtually the whole universe of canadian junior special situations sector. Eventually, we shortlisted it to about a dozen or so companies, with Nordex being one of them. We only bought one of them, company called Circa Enterprises (CTO), at about 40 cents. We are extremely happy with this investment, as the stock at this moment trades at 85 cents, and we also pocketed a special dividend of 5 cents since then. Circa had 60% increase in the first quarter, similar to sales increase at Nordex. The difference is that Circa reported profit of 8 cents a share, while Nordex management did not deliver similar results.
As I indicated before we do not own any stock , and most likely never will (unless the management changes). The stock will have the 45 cents "friends special" private placement
hanging over like a heavy duty lid. Nobody from the "outside" with any common sense shou buy this stock.