Norden: A Turning Point?

Purchase options, Capesize exposure, How the two divisions work together

Norden i.e. DNORD is a company I have owned since March 2022, when public comments made by CEO Jan Rindbo changed my perspective on the dry bulk market. Norden is ignored by most shipping investors, both because it trades on the Copenhagen exchange, and because its complex business model makes it harder to evaluate.

The stock has sold off a lot since its peak in January 2023, but I’m beginning to think it is approaching a turning point. It has certainly become unusually cheap for a company with a long track record of strong corporate governance. As I write this, it is trading at DKK 278, whereas the company’s own estimate of NAV was DKK 451 as of the end of Q2, a discount of 38.5%.

On 5 September 2024 I did a call with the CFO; fellow Norden shareholder Nikolaj Winther Hansen played a key role. Below is our discussion, lightly edited.