Noranda Aluminum Holding Corp. (NYSE:NOR)

CAPS Rating: 2 out of 5

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Member Avatar tsperbeck (99.77) Submitted: 6/30/2015 4:59:53 PM : Outperform Start Price: $6.23 NOR Score: -52.41

Private equity selling =investors buying.

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Member Avatar peregrine (99.01) Submitted: 6/23/2015 3:04:11 PM : Outperform Start Price: $6.93 NOR Score: -54.90

If one searches hard enough, is patient, and is very selective with their timing, enormous gains can be made in the market. I don't like to brag, (but I will) that I typically make 100%+ returns on vulture buys. What is a vulture buy? Its buying when everyone else has sold shares leaving a company well below a reasonable valuation.

My latest purchase is in NOR. The companies shares were very recently trading in line with other Aluminum companies at around $3 a share when they were suddenly crushed when Apollo Management sold its stake in the company, this put shares into nosedive as hedge funds jumped on the bandwagon shorting the stock and taking advantage of the downward momentum. When it reached $2 a share it was clearly trading as if it was headed for bankruptcy, which was never a realistic assumption. As of today had gone all the way under a $1, which is a pretty extraordinary buying opportunity for savvy investors.

While this company does carry a heavy debt load its not due for several years out and is and very manageable. NOR is cash flow positive. In fact Net operating cash flow has significantly increased by 251.28% to $29.50 million when compared to the same quarter last year. Of note NOR has vastly surpassed the industry average cash flow growth rate of 13.64%. If that is not enough, the company has over 165 million in liquidity if needed. It also has rocket bottom electricity rate which is in place for at least another 5 years as well.

What really excites me however, about NOR, is its vertical integration. That is what makes it even more competitive then some of the big boys, like Alcoa. It obtains Bauxite from its own mines in Jamaica and has invested in new port facilities that will save it another $5 million plus a year.

NOR also has one of the newest and most efficient smelters in the world coming on line and production is set to begin in early 2016. This smelter will increase production by over 45% while lowering costs.

As if investors needed more reason to invest into NOR at this level, NOR management recently announced that it hired Morgan Stanley as an adviser to strategic options. In other words, NOR is actively seeking a buyer, and with the vertical integration and cutting edge facilities, I'd expect shares to go well above $3 on a buyout. Sweet opportunities like this one don't come along often.

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Member Avatar TMFDeej (99.20) Submitted: 6/17/2015 10:28:19 AM : Outperform Start Price: $8.54 NOR Score: -62.89

The following is a two-part series that recently wrote about Noranda's stock. I hope that you find it helpful.

When Private Equity is Selling Individual Investors Should Be Buying

http://tmfdeej.whotrades.com/blog/43718295400

Noranda Aluminum's Stock is an Easy Double

http://tmfdeej.whotrades.com/blog/43592097734

Jason

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Member Avatar Lgreenline (< 20) Submitted: 6/16/2015 9:24:46 PM : Outperform Start Price: $7.21 NOR Score: -57.02

This company has been around a long time is now oversold for reasons that will not validate
keeping it down to these levels.

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Member Avatar kkconway (99.35) Submitted: 4/28/2015 5:32:18 PM : Outperform Start Price: $22.79 NOR Score: -82.82

Dick Davis Low price stock pick. Low because of high debt; picked for huge gain should cyclicals turn around. NOR will soar if, and only if, demand for aluminum picks up. If it does, NOR could double with ease.

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Member Avatar MathMusic (86.85) Submitted: 3/5/2015 11:03:20 AM : Underperform Start Price: $20.21 NOR Score: +81.30

With the debt levels where they are, I don't see them recovering any time soon. Down to zero, in my opinion.

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Member Avatar Skipspop1972 (< 20) Submitted: 3/4/2015 1:54:08 PM : Outperform Start Price: $20.63 NOR Score: -81.80

Undervalued in industry
New and improved management team.

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Member Avatar SqwiiTrader (< 20) Submitted: 1/30/2014 3:33:14 AM : Outperform Start Price: $23.87 NOR Score: -100.04

Aluminimum number 5 best sector

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Member Avatar tondaneli (< 20) Submitted: 2/7/2012 9:15:53 PM : Outperform Start Price: $64.86 NOR Score: -143.56

More and more automotive companies are using high strength aluminum in the manufacturing of new vehicles. There have to be aluminum companies out there reaping the rewards.

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Member Avatar spoonieluv (< 20) Submitted: 1/4/2011 5:27:50 PM : Outperform Start Price: $76.83 NOR Score: -153.88

Hot 2010 IPO.

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