NOL a good buy now? (PE less than 10)

Neptune Orient Lines is currently listed on the Singapore Stock Exchange. Its stock price is now pretty depressed at $2.12 with a historical Price Earnings ratio (PE ratio) of 3.935 and a dividend yield of around 6%. NAV is $2.547.

Recently, NOL also announced that it has been invited into bidding for the sale of Hapag-Llyod sale process. This of course has caused an outroar in Germany with people concerned about job cuts. NOL had also stated that it would keep the brand but was silent on job cuts. NOL also said that they will not pay over the odds for Hapag-Llyod.

Background information about NOL

Headquartered in Singapore with revenues of US$8.2 billion, it is the largest shipping and logistics company listed on the SGX.

The company has three principal operating brands: APL, APL Terminals and APL Logistics.

APL, has been facilitating world trade since 1848 and is one of the shipping industry’s leading and most recognised global brands. It had revenues of US$6.7 billion in 2007.

APL Terminals ranks among the world’s leading container terminal operators with facilities, located in Asia and the Americas, which handled more than 4.5 million TEU (twenty-foot equivalent unit) in 2007. It had revenues of US$609 million in 2007.

APL Logistics solves supply chain challenges by offering a suite of international logistics services that are tailored to each customer’s needs. APL Logistics also offers one of the world’s largest and most modern networks of storage and distribution facilities. It had revenues of US$1.3 billion in 2007.

Keeping my watch on this stock now as I believe it might prove a good buying opportunity with stable earnings and relatively good dividend yields at current price.