Buy Nordion Inc. (NDZ)   3 comments

I added a small position of Nordion Inc. (NDZ) this morning for $8.65. After reading “Nordion: A Healthcare Gem With An Excellent Risk-Reward Profile” over at Seeking Alpha, I did a little research and the company seems legit, as well as undervalued.

Nordion has two business units: First, their sterilization technologies unit is involved in radioactive sterilization, which is used to sterilize medical equipment as well as food and other consumer products; and second, they also produce and sell medical isotopes.

As mentioned in the article above, there is some risk involved with the company. The problem is related to their medical isotope division, where their supplier of Molybdenum-99 will quit producing it in 2016. Nordion is actively seeking a new supplier. Until then, the company has taken a market hit.

It is hard to find a well-run company with clean financials, a moated business model with a 75% market share (although they are in a small industry), selling at a discount. Nordion fits that description and is certainly worthy of a small position, and I might add to it later.

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Posted September 19, 2013 by edmcgon in Portfolio Moves

3 responses to “Buy Nordion Inc. (NDZ)

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  1. Morningstar company review agrees with you. Company problems are overblown and Values the Company at $11.

  2. Ed – it does look pretty cheap. Always hard to value a stock when a piece has been sold off. Obviously their trailing p/e is deceptive. But they have a ton of cash and little debt. I will likely do some additional digging. Thanks!

  3. I’m glad you guys like it. 🙂

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