DNick Holding PLC nickel spot price was $5,000/metric ton and $25,000/metric ton, it's rising 0 comments
Oct 6, 2011 9:38 AM | about stocks: CMDK.PK, CNKDF.PK, EUNKF.PK, FLNKF.PK, HNCKF.PK, JJN, JJNC, BHP, VALE, BBL, TIE, ACH, AWC, ALUM, CENX, SLX, PSTL, AKS, GS, X, STLD, GSI, CPSL, RS, SCHN, ENR, SPB, ABAT.PK, CBAK, ZEUS, EWG, GERJ, GF, SPY, DIA, XLI, JJM, VIS, FXR, EXI, CHII, XME, DBB, REMX, GLTR, BDG
is an investment holding company. The Company is engaged in the manufacture of specialized nickel and nickel-alloy materials, as well as metal products. It operates two segments: iron-nickel, which includes bars and wires and strips, and coin blanks. The iron-nickel segment operates through Deutsche Nickel GmbH, which provides nickel and nickel-alloy materials; Auerhammer Metallwerk GmbH, a producer of special metal products in the strips and foils segment; Deutsche Nickel America Inc, the United States that supplies nickel, nickel alloys, soft magnetic strips and thermostatic bimetals, and DN Real Estate GmbH. The coin blanks segment is represented by SAXONIA EuroCoin GmbH, a German manufacturer of blanks from steel strips followed by electroplating with nickel, copper, brass and bronze, and Compania Europea de Cospeles S.A., a 50% joint venture Company based in Spain.
Numbers
Market cap 53.6M EUR
Sales 131M EUR (increase from 90M in 2009)
Quarterly Sales Growth 19%
Quarterly Earnings Growth 200%
EBITDA 5.6M EUR (EBIT profitable since inception in 2005, lost money only in 2009)
Cash 31.5M EUR
LT Debt 21.1M EUR
Assets 118M EUR
Liabilities 47M EUR
Employees 415
Shares Outstanding 5,700,000
Major Shareholders :
Goldman Sachs Group, Inc. 22,85 %
Wickeder Westfahlenstahl GmbH 24,89 %
Lustre Beteiligungs UG 25,88 %
FPS Vermögensverwaltung GmbH 1,3%
MAV Vermoegensverwaltung GmbH 1,2%
Free Float 26,38 %
Resume: Nickel is a global business and DNick is serving the needs of a global market, tightly held by smart institutions with low free float, company is profitable, small & flexible, no debt/default risk, more assets than liabilities, low share price compared to current Nickel spot price about $18,000$/Ton and level of sales. The shares always perform better than the spot Nickel price that's why as a hedging you may sell short for example $100,000 (JJN) and buy $100,000 DNick shares, this way you can't lose even if Nickel prices will crash that is unlikely, looking at 30Y Nickel chart on LME can be seen the prices are on the rise and we are not even close to the peak in cycle but rather in the middle. Holding this shares over years will reward you handsomely. If Nickel will reach high of 2006, DNick will be worth much, much more. This trade as a long/short against (JJN) or as a pure buy&hold is a WIN-WIN. You decide.
www.lme.com/nickel_graphs.asp
http://www.nickelinstitute.org/en/...Nickel/WhereWhyNickelIsUsed.aspx
