Small investors stocked up on Norwegian as stocks crashed – E24

Small investors stocked up on Norwegian as stocks crashed – E24

The manager also added more to the airline's stake last month. – The cycle was weak.

The Norwegian market cap is NOK 12 billion.
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“It's a good, old favorite,” says investment economist Mads Johansson. nordentNordentAn online broker that is very popular among individuals. to E24.

In June, Norwegian Air topped Nordnet's most-bought stock list, after the stock suffered a setback.

– It is a company that quickly comes to your mind when you go on vacation. This quarter is the absolute peak season, Johansson says.

– The company is down 17 percent in the past month, so there's another one Buy the dip“Buy the dipBuying bearish stocks, or “buying bear stocks,” is a financial term used by those interested in stocks.And the atmosphere there, too, he says.

Norwegian has long been a favorite among private investors. According to Johansen, 81,500 clients own the stake.

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The airline share has left behind a period of significant decline. Since the highest listing of the year in April, the share has fallen by more than 30 percent.

Part of the decline in June came after DNB Markets analyst Ole Martin Westgaard cut his price target to NOK 17, down from NOK 19 previously.

Meanwhile, he commented in a note that the brokerage expects second-quarter results to be lower than expected, and that the company's guidance may be revised downward.

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“It reflects declining yield momentum and higher-than-expected cost inflation,” Westgaard, also cited by Bloomberg, wrote.

DNB Markets still has a buy recommendation for the Norwegian stock for its clients.

A Bloomberg overview shows that several brokers have recently revised their price targets, but none have a recommendation to sell the airline stock. Eight recommend “buy,” while one recommends “hold.” The average price target is NOK 18.29.

Manager Robert Ness says the fund he runs bought Norwegian last summer, but has reduced its holdings this winter.

– Now the path has become weak and we have increased the position recently, he says.

– I didn't really think he would be so weak.

Næss explains part of the price drop by saying that May's traffic numbers were “a bit disappointing.”

-The market has become a bit uncertain. It can be as simple as the weather being good in May. He says it will be very interesting to look at traffic numbers for June next week.

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Shipping sales

According to Johansen, Nordnet clients traded shares worth NOK 18.8 billion in June. They bought more than they sold, and the so-called net purchase was more than 1 billion Norwegian kroner.

Shipping, oil services and banking dominate the sales list, while raw materials, industry and aircraft top the list.

The dry bulk shipping stake dominated by John Fredriksen's Golden Ocean was the third most sold in June after rising more than 50 percent so far this year.

Johansson points out that the share fell again in June, as well as uncertainty about the Chinese economy, a key factor for dry bulk shippers. Dry bulk is the transport of raw materials such as iron ore, coal and grain by sea.

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Shipping has been a profitable sector on the Oslo Stock Exchange for several years. In the past five years, the shipping index has risen 480 percent, and since the new year the index has risen by more than 40 percent.

“It was the favorite sector,” says Johansson.

Shipping is also among the sectors that sometimes fluctuates more on the stock market and is often referred to as risky stock investments.

But in June, investors trading via Nordnet sold several shipping stocks, including gas shipping company BW LPG, product tanker shipping company Hafnia, and car shipping company Gram Car Carriers.

Johansson believes investors will benefit after achieving a strong return.

-It's usually a bit low season in the summer. You can see that in the prices. They are usually less. It then tends to rise seasonally during fall and early winter.

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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