Director, Pearl Hill Advisors

Nicholas Tanner

Director

Pearl Hill Advisors

Equity Bottom-Up

<p>This is an exceedingly volatile market and over the last few years the operating environment has been very difficult. Orders taken pre-Lehman, when the DOLLAR price of a ship was still high, proved very profitable as they fed through to sales. The last of these fed through to sales in the year to 3/15. After the Lehman crisis, demand for ships collapsed, the dollar price of new ships halved and competition from China and Korea intensified. A strong yen made matters worse. For an 18 month period…</p>

This is an exceedingly volatile market and over the last few years the operating environment has been very difficult. Orders taken pre-Lehman, when the DOLLAR price of a ship was still high, proved very profitable as they fed through to sales. The last of these fed through to sales in the year to 3/15. After the Lehman crisis, demand for ships collapsed, the dollar price of new ships halved and competition from China and Korea intensified. A strong yen made matters worse. For an 18 month period…

Namura Shipbuilding (7014) After Write-Offs, Shares Still on a Negative EV. Buy into This Sell Off.