1. The company announced a NPAT down grade 2. The SP sold down to adjust to this news 3. The SP price now offers a greater discount than a few months ago even after taking into account the lower NPAT. 4. Norfolk fundamentals around the the new NPAT are still very strong. 5. Norfolks earnings and client mix are very attractive. 6. From an M&A view point NFK is now very very cheap. 7. Maui, Perpetual, Masfen & others exit strategy can only be via M&A and more importantly this will have always been their "A" strategy and not something of a "B" plan due to falling markets that we have witnessed in recent months. 8. The overselling of the SP will now attract suitors attention and at the same time challenge the major shareholders on what is an achievable exit price. Also it should not come as a surprise if it emerges that negotiations/pressure between major shareholders to accelerate an M&A deal 9. NFK is attractive to other industry players wanting expand away from the resource sector as well as Private Equity.
NFK Price at posting:
62.0¢ Sentiment: Buy Disclosure: Held
