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Friday, 01/08/2004

Indispensable
By Nich Sheldon
NDSN - Nordson Corporation

Company Description

Nordson Corporation is the world's leading producer of precision dispensing equipment. Nordson systems apply adhesives, sealants and coatings to a broad range of consumer and industrial products during manufacturing operations, helping customers meet quality, productivity and environmental targets. The company also manufactures technology-based systems for curing and surface treatment processes. Headquartered in Westlake, Ohio, Nordson has direct operations in 30 countries and 3,500 employees worldwide.

[Source: Company Press Release]

Reasons to Invest:

This up and coming fluid dispensing company is ready to keep its bullish trend flowing higher. From a technical standpoint, Nordson Corporation (NASDAQ:NDSN) has been trending through its March 2003 regression channel with no restraints. Furthermore, the stock has been trending through another more extended regression channel, which started in Mid-August 2003 with vigor. This tighter, faster moving regression channel has been serving as support/resistance for NDSN for five months now. In fact the stock set a new all time high today (Monday, January 12, 2004). My speculation is that if we see a confirming move over the top of the March 2003 regression channel which is just over 36, we could see this stock continuing in its August regression channel with no overhead resistance to slow its progress higher.

On January 7th, 2004 Nordson acquired its ISO 9001:2000 Certification. ISO refers to International Organization for Standardization, which insures that NDSN upholds its quality stands by periodically revising and ensuring that they are current and satisfy the needs of the global community. Since NDSN is assuring its customers and clients of satisfaction this could be more reason to choose them over other dispensing companies, as well as increase their net profits, further providing them the strength they need to continue setting new highs.

Based on NDSN's accuracy of earning's estimates their Star Rating was upgraded by Wlater S. Liptak of McDonald Investments Inc. He currently has the company ranked at 4 out of 5 stars. Robert Mccarthy of Robert W. Baird & Company also has the company at 4 out of 5 stars.

Fourth quarter 2003 earning for NDSN were up from $179 million to $189 million. Sales volume rose by 1 percent, which takes into effect the favorable currency effects that contributed an additional five percent to the overall sales increase. Earnings per share were up by 44 percent on a diluted basis for the fourth quarter.

In the fiscal year of 2002 annual sales were $648 million, which is 3 percent less than their 2003 fiscal year sales of $667 million.

On November 25th, 2003 Nordson sent out a press release stating that their annual report was named "Best in Industry" in NAIC National Competition. Their report went on to note, "New Products, New Initiatives, New Opportunities is both the title and focus of Nordson Corporation's 2002 annual report that has been selected as the best in its industry in the prestigious NAIC (National Association of Investors Corporation) Nicholson Awards competition."

Earning this prestigious top-notch award in the machinery industry is a huge honor for this dispensing company. They were chosen from hundreds of other companies, of which were evaluated from the perspective of individual investors by members of the NAIC. Just to get an idea of what an honor this award is 800 NAIC members evaluate 800 companies in different industry categories. They look into each company's financial highlights, historical financial information, management discussions, other narrative comments, design and readability.

In 2003, Nordson raised its dividend for the 40th consecutive year. NDSN is one of only 21 U.S. companies that have increased their annual dividend for 40 consecutive years. Their annual dividend yield is $0.62 per share, which tallies out to a 1.73 percent dividend yield.

This ends another exciting episode of the DripAdvisor.com Drip of the Week. Stay tuned next week, as we will spotlight another stock worthy of the DripAdvisor.com limelight.

Until Next Week,
Nich Sheldon
Editor

Broker Recommendations

Strong Buy         3
Buy                2
Hold               1
Sell               0
Strong Sell        0

Brokers Covering   6


DRIP Information:
Shares to Qualify = 1
Auto-reinvestment = No
Accept Foreign Accounts: Yes
Temper Enrollment: Yes

Min/Max Investment = $10-$4,000/Quarter


Reinvestment Fees - 
Dividend investment fees: 0
Cash investment fees: 0
Auto reinvestment fees: None


Transfer Agent:
National City Bank
800-622-6757


Corporate Headquarters:
437 Madison Avenue
New York, NY 10022
Phone: (212) 328-2100



 
 

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