Hydro Stock Quick Win by the Algorithm: NHYDY Is Powering Their Way To Victory

Quick Win by the Algorithm

On July 12th, 2017, the I Know First algorithm issued a bullish forecast for Norsk Hydro ASA (OTCMKTS:NHYDY). NHYDY had a signal of 10.41 and a predictability of 0.16. As a result, in accordance with the forecast, the company’s stock had a return of 22.46% within 3 days, showing a quick win by the algorithm.

NHYDY stock price

Norsk Hydro ASA, an aluminum company, engages in power production, bauxite extraction, alumina refining, aluminum smelting, remelting and recycling, and rolling activities worldwide. It operates in Bauxite & Alumina, Primary Metal, Metal Markets, Rolled Products, and Energy segments. The Rolled Products segment operates rolling mills. This segment primarily offers aluminum foil, strip, sheet, and lithographic plate for application in various sectors, such as packaging, automotive, and transport industries, as well as for offset printing plates. The Energy segment owns and operates 26 hydroelectric power plants with an installed capacity of approximately 2,000 MW in Norway. Additionally, the company also serves building/construction, general engineering, electronics, solar, and HVACR industries. Norsk Hydro ASA was founded in 1905 and is headquartered in Oslo, Norway.

NHYDY stock price

Norsk Hydro ASA (OTCMKTS:NHYDY) will take full ownership of aluminum products joint venture Sapa. NHYDY reached a deal to buy the 50% of the company it doesn’t already own from partner Orkla ASA. The deal values Sapa at 27 billion Norwegian kroner ($3.2 billion). Furthermore, this ownership acquisition aligns with Hydro’s strategy of becoming an integrated aluminium company involved in everything from mining to end-user products.

Orkla and Hydro formed Sapa in 2013 as a joint venture. The companies pooled some of their assets to create a platform for growth in emerging markets. As a result, the company employs 22,400 people and is present in 40 countries.

“The purchase price will be paid in cash at completion of the deal and financed through cash positions and issuance of bonds”, Hydro said.

Additionally, demand for extruded products in Europe and North America increased compared to the previous quarter by around 9 percent and 3 percent respectively, some this is due to seasonality. Norsk Hydro ASA is in an advantageous position after positive Q2 results along with their recent increase in Sapa ownership.

Current I Know First subscribers received this bullish NHYDY forecast on July 12th, 2017

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.