Nordion Inc

[Shrivathsa]

Nordion is a Canadian-based health-care company with two operating units: sterilization technologies and medical isotopes.

They are listed on NYSE.

The ticker is NDZ.

The company has around $5.21 in cash.

The share is trading at around $10.40

Effectively, no debt company.

The company has almost 75% market share in its business.

In a best case scenario, it will fetch around $13 a share and worst case scenario it is still worth $11 a share.

My thoughts on Nordion are at this link.

http://sgx-stocks-sti.blogspot.sg/2014/0...n-inc.html

[orangetea]

Nordion is a Canadian-based health-care company with two operating units: sterilization technologies and medical isotopes.

They are listed on NYSE.

The ticker is NDZ.

The company has around $5.21 in cash.

The share is trading at around $10.40

Effectively, no debt company.

The company has almost 75% market share in its business.

In a best case scenario, it will fetch around $13 a share and worst case scenario it is still worth $11 a share.

My thoughts on Nordion are at this link.

http://sgx-stocks-sti.blogspot.sg/2014/0...n-inc.html

Congrats on your position.

At this level, risk/reward is not great.
from past price action, it did not break the 10.x level twice.

[Image: 5B7nXx3.jpg]

If you don't mind sharing, how do you verify that they have "75% market share".

Also if they have 75%, how come their market cap is so small.

Morningstar Industry Peers to NDZ

[Shrivathsa]

Hi Orangetea,

I have not verified that they have 75% market share, more taken at face value on the basis of the Seeking Alpha article.

The thing is that from what it looks like this is a very small niche that they dominate i.e. providing sterilized isotopes. Actually the peer comparison is a bit off, for the simple reason that the peers shown in Morningstar are not really in the same field. To give an example, Thermo Fisher supplies analytical instruments, while Nordion supplies Isotopes, while say Covance is more into clinical research.

The big overhang on the stock, was the lawsuit against them. They were on the hook for huge liability, which, i was not aware of. However, the stock re-rated quickly when the lawsuit was settled recently.

They sort of follow the Gillette Razor and blade model (again from the seeking alpha article).

For now, I am still long, but I am tempted to use CW8888's pillow stocks strategy.

[Shrivathsa]

Nordion being bought over.

http://www.ottawacitizen.com/buyer+acqui...story.html

[orangetea]

Nordion being bought over.

http://www.ottawacitizen.com/buyer+acqui...story.html

Congrats!