Here's a question for anyone who understands this game better than me. I though NOR was looking "cheap" and looked for an entry point. Then I noticed book value is only 2.13 and its trading 50 percent over book. My question is... Was this always just about what book value was or did it just drop somehow? A year ago NOR was trading above 7. Two years ago 14! Can someone shed light on this? Any predictions for earnings next week?
Aluminum prices declined so NOR declined in value. Toss on the fact that they are heavily leveraged and you get significant volatility as well as risk of bankruptcy. Of course, if aluminum shoots up in value you make a lot of money.
I don't really have any insights on earnings but aluminum is weak so their earnings will be weak. Might even be in a loss position.
Thanks for the reply. What you said makes sense to some extent but still doesn't all add up for me. A year or two ago, raw alum was trading at just over a buck. 25-45% more than today. But NOR was between 7-14$ which is like 120-350% higher. I understand its a higher beta stock but it still seems out of whack. Any ideas about that? What do you think about buying NOR at this price in this market?