NMS - Neptune Marine Services

plasma - the news is its 90c or 95c in a purchase plan - a fixed amount to buy as long as u r a holder.

watch them fly once they begin trading, wanting to get on, then average down at the plan price.

Last time we went into a trading halt followed by a suspension from trading we came out the other end with 2 new aquisitions and the 60c Non-renounceable rights issue.

Do you think that Lange can top that?

What company will be next, one about the same size as the previous aquisitions or maybe one of equal size to Neptune.

Waiting, waiting, waiting!

I hope shareholders don't get a go at buying, so we can just get on with things. Wouldn't the SP get going sooner if only the instos bought, without waiting for shareholders to take up offers?? I'd say Lange would be champing at the bit to get moving onto the next step in his plan. I wonder whether MRM is still an option, I bet it is!

Hi Sounda, i'm well, hope you are to!

Does anyone know which stockbroking firms will give a margin loan against NMS or NMSO. I actually only have NMSO, but I could convert some to FP's from money loaned, couldn't I ?

If MRM were an option would they not also be under trading halt?

Having only become a shareholder in May I have not experienced this type of scenario. Can someone outline the for & against arguement for insto's only versus ordinary shareholder having access?
Thanks

shaun - from my understanding, lange goes to, and prefers the instos, as it is a quick reliable method for him to raise significant & adequate levels of cash at relatively short notice, without (as sophie points out) waiting for shareholders to get the paperwork, time to decide, and return the paperwork with payment for processing, then issuing of all those separate small parcels of shares.
the instos who got involved at 20c, then 60c, now the 90/95c offer have probably fallen over themselves to get hold of more neppy scrip, especially if lange has done another update for them. and when he delivers (i did say when) they will again come calling next time he wants cash to expand neppy.

the rest of us can just sit back and enjoy the ride......with or without any rights issue or SPP......if there is one it'll be just a token gesture.

reg9400 said:

Last time we went into a trading halt followed by a suspension from trading we came out the other end with 2 new aquisitions and the 60c Non-renounceable rights issue.

Do you think that Lange can top that?

What company will be next, one about the same size as the previous aquisitions or maybe one of equal size to Neptune.

Click to expand...

He has already announced two acquisitions. Sea Struct and Ross Deeptech.

This capital raising is to pay for those and, I would assume, the 3 ROV's they said they are ordering in the AGM presentation.

I agree with Sir Baggy, it is more cost effective to talk to 1 person to get
$1mil than it is to talk to 1 mil people to get $1. Shareholders like us get plenty of opportunities to top up at reasonable prices when the big guys drag the SP down.

looking for a nice surprise for Xmas.

Seems to have come out of suspension with no announcements.

Cheers

Dutchie

PS Are all bids/offers cancelled (with a clean slate) when a stock comes out of suspension??

dutchie said:

Seems to have come out of suspension with no announcements.

Cheers

Dutchie

PS Are all bids/offers cancelled (with a clean slate) when a stock comes out of suspension??

Click to expand...

Dutchie if you try put one up, doubt it'll accept it, will probably say that the stock is currently suspended

woywoy I know the raising was to pay for the 2 previous pruchaes, but there is enough left to buy a smaller diving company, to increase the manpower required.

Maybe a rights issue to raise $24 mil to buy 3 ROVs

Now suspended again.

This morning it had a status of normal and some bids/offers were placed.
(Comsec).
All the NMSO have been wiped??

????

Right.... with all this excitement surrounding Neppy i think it would be prudent of all us to just take a step back and analyse the risks that the Neptune Business (and its share price) may possibly face. I've listed the top five risks in order of importance that i believe could potentially stall/disrupt the neptune juggernaut..

ALL COMMENTS ARE WELCOME...

1. The integration of all the acquisitions:

This seems to be under control at the moment as Langey has treated each individual business as just that - an individual business, and has not pushed to hard for uniformity across the board.. I firmly believe this is the number one risk for Neptune and the one most critical to its success. The proof of successful integration will be in the profit of each of the individual companies. If they keep growing then we can safely say that Lange has integrated them well.

2. US Recession:

IF the Us should fall into a recession it will affect everyone (and we can't say it won't because it will...) The P/E ratios that companies are now trading on will be lower if there is a recession and this could possibly hurt neppys share price. Also, a US recession could affect the Neptune business as a whole.

3. Management:

Currently i couldn't think of anyone better to be leading this company than Mr. lange. After he has had 20 years with the worlds leading oil services company Schlumberger. Imagine all those contacts...... If we were to lose Lange i think there would be a significant dent in the future of Neppy. But I'm hoping he ain't going to leave anytime soon. Also, the management of the individual companies have all been retained for a three year minimum which is an excellent move, may have cost a bit more with the acquisitions but it'll be worth it in the long run....

4. NEPSYS Technology:

This is basically the main reason i invested in this stock. This is a HUGE advantage that Neptune has over competitors, but how long do patents last for. I don't know the answer so if someone could tell me it would be much appreciated.

5. Lack of staff:

Without the correct staff in place (eg. the divers) Neptune can't increase its work load and therefore can't increase profits. I like Langes idea of poaching University students at 2nd and 3rd year level and grooming them to be part of the Neptune system..

JUST AN EXTRA COMMENT:

Until Neptune posts a profit many investors will not touch this stock.. So here's hoping for Profit of around 8 cents per share for 2008. On a P/E of 19 which i believe Neptune should be trading on that should hopefully give us a price of around $1.52 leading up to May/June 2008...

This is not financial advice - Just My Thoughts

good post budgie

1. youve answered your own question, describing how lange allows each business to continue as is, and obviously coming together when required.
also remember he's divided the businesses into 3 divisions - and from the latest broadcast for comsec each are achieving hgh margins.

2. from my understanding, one sector not afraid of recession is OIL. the big oilers have massive committments, going ahead many years, with plenty of spare cash to play with, so i dont really see a US recession having much impact at all on O&G services. this is a big reason i jumped on - recession proof.

3. in the lap of the 'gods of underwater welding' lol - cant do anything about it, so dont worry about it.

4. not exactly sure myself, i think its less than 10 years, but i think the aim is that by then, NMS are a household name like the other 'epic contractors' and so getting their fair share of the mountains of work.

5. again, cant control it, so dont worry about it. from all reports the staff are all very pleased with their lot, no doubt including the staff options etc.

the extra comment - you are totally correct.

it would be great to hear the level of support for this placement - the 20c one was undersubscribed (and poor old MBL as sub-underwriter HAD to take the lot - gee they must regret that lol)
the 60c one was heavily over-subscribed (plenty of good patersons clients didnt get a sniff), and i suspect this 95c placement will also be heavily over-subscribed.
if this proves to be correct (and especially if made public), that price target you mention will possibly be reached on open, with eager folk wanting their small lots, to then qualify for the SPP at 95c

Budgie

1. Cross promotion of services, Strong O&G industry, Savings due to synergies of backoffice functions should be the basis for growth.

2. Oil imo is like death & taxes you can't get away from them.

3. Lange shows committment by his long service at Schlummy. He will be rewarded for continued performance at the helm of neppy. Imo why would he take a world cruise only to get off before the last stop (retirment) and he's only 39.

4. Got on board for the same reasons. I thought patents lasted 11 years. If i owned a diving company and I had no patented technologies I would be knocking on neppies door to secure my future.

5. Need the workforce in place to respond to the orders. Is that someone knocking on the door!

1st Qtr after May/June 2008 should show the effects of langes work and hopefuly an increase in SP well above the your indicator.

compliments on the the post

Hi Budgie

1.yes, although Lange says integration has been /is being achieved.

2.Lange actually mentioned US recession as a risk in the Comsec conference, but he did not expand on his remark. I believe this risk is solely to the anticipated tremendous growth rate of NMS and not to its general operation at whatever size it happens to be if a recession kicks in.

3. Agree Lange is very important, at least until the NMS behemoth is fully realised.

4.Different patent life in different countries. Don't recall where, but 15 years was mentioned somewhere. Quick Google says standard Aust patents last 20 years - if it is a standard patent. A decade would be long enough.

5. Yes, engaging students shows excellent foresight for engineering resources - In diving they are getting companies with divers attached and advertising jobs - Nepsys training, good salary and the loyalty and conditions / tone of NMS empoyment ads look pretty alluring. Also, snapping up these top-shelf acquisitions who so willingly come on board and with such a growth profile makes NMS attractive.

6. Yes agree - probably the biggest section of the market does not even have a company on their radar until there are profit numbers to crunch -"great story" only read after a real measure of success available. We have all been salivating to see what happens then...

will be loading up on some more of these in the coming weeks... bought in just recently at 1.35 and 1.10 so I'm still in the red, but very bullish on it med/long term...

"worley parsons in a wetsuit" - let's hope

Crickey Bags...you're rubbish sifters are good.....right on the money.
Now thats what I call a nice start to next year.
Onwards and upwards....

Plasmapark said:

Crickey Bags...you're rubbish sifters are good.....right on the money.
Now thats what I call a nice start to next year.
Onwards and upwards....

Click to expand...

yeh that was a pleasant wake up this morning... so that means we can buy up to 5000 at $0.95 or can we get as much or as little as we want...

I only wanted to sell a few NMSO through Etrade and they still had them suspended till now?? Had to ring them to sort it out whilst missing out on buys at around $1 earlier, mongrels!!

On Ross Deeptech and their wind and water power generation, some people don't think it's a solution, see article. What a plonker!!

http://www.smh.com.au/news/environm...ey-mouse-energy/2007/12/14/1197568217651.html

Another article that may interest NMS shareholders is this theory of investing in one stock only, which this following article subscribes to. Food for thought when you have a stock as good as NMS, in my view.

http://www.smh.com.au/news/business...such-a-bad-idea/2007/10/12/1191696177133.html

Good to see the SP moving upward again.

Sophie....Plonker is right....in fact, make that a double.
Regards the single stock article??
Thats something I've been doing for some years now.(NMS being my one holding right now)
I also note with some regret, the mention of Fortescue....I had a good sized holding that I VERY unfortunately offloaded last April at $8.00.
Made a killing then however, hindsight can be a very damning thing.
Such is life.