NMS - Neptune Marine Services
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Doesn't seem like anything will get this Sp going, but very good quarterlies. Or maybe a huge contract. As for your question Prawn, re the margins, there is many mentions in past presentations of the great margins, if someone wants to dig through and locate them, I think the delayed job is one with a hefty margin. Here's an article from todays AFR, again very positive and seemingly underpriced
Todays AFR article reads:-
"For the growth investor, oil and gas engineering group Neptune Marine Service may be a good way to play oil's growth, outside of the main producers and developers.
Neptune provides servies ranging from rig positioning to repair and maintenance. It has an underwater welding system that allows rigs to be repaired while submerged.
Earlier this month, its Link Weld Emgineering subsidiary was awarded fabrication contracts worth over $5 million to service global oil and gas group Apache Energy's Van Gogh field off Western Australia. Its Tri-Surv Geomatics subsidiary also won an offshore hydrographic survey contract worth more than $8 million for one of INPEX's West Australian gas developments.
Despite the fervour in the oil and gas, Neptune shares are down 52.6 per cent year-to-date, on a two year forward P/E forward ratio of 7.6. Macquarie's Neil Carter says the low P/E ratio makes the stock attractive. Its closest comparable, Mermaid Marine, trades on 11.8."(Oil and gas companies) have got money coming out of their ears, so top-down .... it is fantastic. And bottom-up (Neptune) have got a great set of services, they have a competitive advantage and it's cheap."
Todays AFR article reads:-
"For the growth investor, oil and gas engineering group Neptune Marine Service may be a good way to play oil's growth, outside of the main producers and developers.
Neptune provides servies ranging from rig positioning to repair and maintenance. It has an underwater welding system that allows rigs to be repaired while submerged.
Earlier this month, its Link Weld Emgineering subsidiary was awarded fabrication contracts worth over $5 million to service global oil and gas group Apache Energy's Van Gogh field off Western Australia. Its Tri-Surv Geomatics subsidiary also won an offshore hydrographic survey contract worth more than $8 million for one of INPEX's West Australian gas developments.
Despite the fervour in the oil and gas, Neptune shares are down 52.6 per cent year-to-date, on a two year forward P/E forward ratio of 7.6. Macquarie's Neil Carter says the low P/E ratio makes the stock attractive. Its closest comparable, Mermaid Marine, trades on 11.8."(Oil and gas companies) have got money coming out of their ears, so top-down .... it is fantastic. And bottom-up (Neptune) have got a great set of services, they have a competitive advantage and it's cheap."
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Wow....its that quiet in here I'm sure I heard a pin drop.
Whats up folks???
Lots of wound licking would be my best guess...
Sophie.....those three words at the end of your last post are ringing in my ears....."And it's cheap".
Whats up folks???
Lots of wound licking would be my best guess...
Sophie.....those three words at the end of your last post are ringing in my ears....."And it's cheap".
Have faith, the day will come. I'm holding my supply of which I managed to get cheap.
In context of what is happening around us in the sharemarket it's holding well at around 50c of late.
I believe the company has the right management to increase it's revenue.
Just waiting for the next few year estimates which will surely increase the company value. IMO
In context of what is happening around us in the sharemarket it's holding well at around 50c of late.
I believe the company has the right management to increase it's revenue.
Just waiting for the next few year estimates which will surely increase the company value. IMO
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Neptune rules subsea niche'
ABM AMRO has initiated coverage of Neptune Marine Services with a buy recommendation and a target price of 67c
The broker said Neptune was emerging as one of Australia's leading providers of integrated engineeing solutions to the international oil and gas,marine and renewable energy industries
Neptune's key advantage is its patented permanent underwater welding technology,NEPSYS. The company is targetting the high margin,lucrative global subsea oil and gas sectors.Over the past 18 months Neptune has grown by making eight acquisitions to service the subsea market.
Acording to ABN AMRO,if Neptune's management delivers on its promise to integrate its acquisitions and report strong organic growth,the the stock is likely to be rerated.
Neptune lost 1c to 48.5c
ABM AMRO has initiated coverage of Neptune Marine Services with a buy recommendation and a target price of 67c
The broker said Neptune was emerging as one of Australia's leading providers of integrated engineeing solutions to the international oil and gas,marine and renewable energy industries
Neptune's key advantage is its patented permanent underwater welding technology,NEPSYS. The company is targetting the high margin,lucrative global subsea oil and gas sectors.Over the past 18 months Neptune has grown by making eight acquisitions to service the subsea market.
Acording to ABN AMRO,if Neptune's management delivers on its promise to integrate its acquisitions and report strong organic growth,the the stock is likely to be rerated.
Neptune lost 1c to 48.5c
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at least fix the other persons typo next time sophie lol.
this is nice - finally one of the big houses picking up a scent.
you could assume the others will shortly follow.
and just in time for lange's new package to be voted on.
a few huge projects getting started in this half - fingers crossed some work comes our way.
this is nice - finally one of the big houses picking up a scent.
you could assume the others will shortly follow.
and just in time for lange's new package to be voted on.
a few huge projects getting started in this half - fingers crossed some work comes our way.
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Yeah i figured that out whilst trying to google where the article was from, talk about being caught out?! All in the name of keeping this thread updated.
Another reason for the SP not performing on the 1st few days of the new FY, is that some margin loans may have changed their margin ratio on NMS. Leveraged equities did as of 1july, sent me into a margin call, beauty! and I had to sell, so I thought bugger it and sold all that they held of my NMS.
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http://www.neptunems.com/sites/neptunemscomau/assets/public/File/pdf/NMS040608.pdf
after lange released that trading update last month, revealing the delay in the GOM job, patersons released an updated broker report.
NMS have it available now on the above link.
remember its a month old, and doesnt include the acqs announced or contracts won since.
after lange released that trading update last month, revealing the delay in the GOM job, patersons released an updated broker report.
NMS have it available now on the above link.
remember its a month old, and doesnt include the acqs announced or contracts won since.
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Six months ago, I thought the light I was seeing was the end of the tunnel.
Turns out it was a rather large train, carrying a load of bears...
Turns out it was a rather large train, carrying a load of bears...
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You probably were seeing the light at the end of the tunnel. That train was more than likely carrying passengers with margin loans. The margin loans had a domino effect. As long as Macquarie doesn't start selling up and I don't think they will because of the work that is coming in, NMS shares are a bargin. I'm picking they will bottom out at 40c. If it wasn't for Opes and others NMS share price would probably be around ABN AMRO's value.Six months ago, I thought the light I was seeing was the end of the tunnel.
Turns out it was a rather large train, carrying a load of bears...
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I thought a little odd, someone putting an order in for NMSO at 30c, this morning, given the market still looks volatile, the conversion is 20c, and the heads are at 41c. Thats an 11c gap, I think at least 16c is fair. Anyway, looked like someone quickly obliged and put the order straight back in at 25c, for at least 5000 more. The 30c buyer must be keen, or thinks things have bottomed? And 40c is looking like a strong possibility today, unfortunately.
From the looks of things we wont be getting any positive financial news till the 1st quarter report, in october, hopefully?? Well the information out on those large jobs and the one being carried from last quarter suggests so.
Great news on the acquisitions as usual, it's starting to become quite big!!
From the looks of things we wont be getting any positive financial news till the 1st quarter report, in october, hopefully?? Well the information out on those large jobs and the one being carried from last quarter suggests so.
Great news on the acquisitions as usual, it's starting to become quite big!!
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Uh huh.....
The company is certainly becoming quite large.....pity it's not reflected in the SP.
37 seems stupid to me, considering Neppy is in the oil and gas sector and. also considering the oil price right now.
Last year, Neppy seemed to be riding the back of the oil price, now it looks to be wearing the same anchor as the US financial market.
Seems the train load of bears has put the wind up the rears of the lemmings.
The company is certainly becoming quite large.....pity it's not reflected in the SP.
37 seems stupid to me, considering Neppy is in the oil and gas sector and. also considering the oil price right now.
Last year, Neppy seemed to be riding the back of the oil price, now it looks to be wearing the same anchor as the US financial market.
Seems the train load of bears has put the wind up the rears of the lemmings.
NMS on boardroom radio,
http://www.brr.com.au/event/47759
Christian Lange sounds confident! I wish the rest of the market was!!
http://www.brr.com.au/event/47759
Christian Lange sounds confident! I wish the rest of the market was!!
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some new positive stuff mentioned, like the 300 day contract for the new boat they havent even received yet, the $50 million order book for 09 already in place, and re-inforcing that for the forseeable future all acquisitions will be funded thru cashflows & debt (minimal debt too) - no equity raisings.
the current SP is unreal - you have to assume, given the relatively small turnover as always, its simply folk who are being destroyed by overall market (and economic) sentiment having to sell quickly to raise cash. other assets like property wont realise cash in 3 days, so selling their share portfolio is the only option.
keeps giving the folk accumulating more opprotunities.
in the lead up to the vote on langes new package, i can see more positive news coming out.
the current SP is unreal - you have to assume, given the relatively small turnover as always, its simply folk who are being destroyed by overall market (and economic) sentiment having to sell quickly to raise cash. other assets like property wont realise cash in 3 days, so selling their share portfolio is the only option.
keeps giving the folk accumulating more opprotunities.
in the lead up to the vote on langes new package, i can see more positive news coming out.
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I sorta feel sorry for the poor sods that can't stay the distance.
Been there, done that and, the feeling of turning a paper loss into a real one isn't particularly pleasant however, sh*t happens.
I think I'd rather wear a cash loss than have a leg amputated.
I'm spewing I don't have the readies to purchase while the price is so low.....buisness downturn being the main bugbear, thanks in no small part to interest rates and fuel price.
Such is life.
Been there, done that and, the feeling of turning a paper loss into a real one isn't particularly pleasant however, sh*t happens.
I think I'd rather wear a cash loss than have a leg amputated.
I'm spewing I don't have the readies to purchase while the price is so low.....buisness downturn being the main bugbear, thanks in no small part to interest rates and fuel price.
Such is life.
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Dano, Re your question, the number one factor is the overall market sentiment, so that could take well into next year before that changes. Whether the market recognises and rewards the NMS sp, as a recession proof, oil price proof, overall negative sentiment proof stock remains to be seen. Unfortunately this market came as NMS is heavily investing in companies, staff, vessels and equipment and this market doesn't recognise potential. The next best chance of seeing large $$$ in the bank wont come till the 1st quarter report at the end of October. It would have to be a very large contract to alter the SP, as the ones to date have been excellent and done nothing. And I doubt they could handle a very large contract anyway, from what I gather they have already gained 70% of the work they can handle for the first 6months of the new FY. Just a rough calculation, but if the approximately 50million of new work they have booked is 70% of FY09 1st half, you could estimate (roughly!!) that FY09 should earn around 140million. And given that they already have a huge head start with the 70% of 1st half FY09 already booked, they should earn that.
It's a wonder though that there has been no mention of licensing out the Nepsys technology, if BP says it is the weld of the future, surely it would be someday used by people other than NMS staff. If that happened then there would be little drain on staff and probably Clive's training centre would be getting inundated with nepsys training. One day nepsys should again be used on ships, docks, locks etc, but for the moment I'm sure they only limit it to big margin oil and gas jobs. I think if they could work out agreements to license the technology we could see a huge surge in SP, after all they only have a handful of trained staff and the worldwide potential use for nepsys would be enormous, or is it?????? Lange did downplay the significance of nepsys recently, in relation to company earnings, i wonder exactly what he meant??
The recent BRR mentioning the 300 day contract for the new vessel must be one of their biggest. The smaller vessel was costed at 37.5k a day, but maybe there is variables making it more expensive, such as a ROV, but maybe the larger vessel is worth considerably more per day? if it was 40k per day x 300, it would earn 12million.
When all these companies finally integrate and start on selling all NMS services, which would probably require at least 3 times the current workforce, this company will be huge and the SP will be well into the $$$. Patience is needed and $$$ you wont need now, because this could take awhile. I personally hope it stays down awhile, as I sold a few, to invest on something I think will be a quick $$$ spinner, then put all $$$ back on NMS. Nevertheless I still hold many NMS. Plasma i think we are still in the middle of the tunnel, not seeing light yet, but when we do it will be blinding. Just my thoughts, of course research yourself.
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Value 3
Average
Risk 4
Higher risk
Growth 1
Highest
Income 5
Lowest
VALUE Company Market Sector
Aspect Earnings Model 0.69 0.96 1.42
P/E ratio 17.0 10.28 19.2
P/B ratio 1.41 1.47 1.78
P/E Growth Ratio 0.23 1.54 0.65
P/S Ratio 2.45 1.96 18.5
INCOME Company Market Sector
Dividend Yield -- 6.3% 1.9%
Franking -- -- --
Tax adj Dividend Yield -- 4.6% 1.1%
Dividend Stability 0.0% 94.2% 0.0%
RISK Company Market Sector
Beta 1.12 1.02 1.16
Current Ratio 2.59 1.63 6.01
Quick Ratio 2.39 1.08 5.49
Earnings Stability 77.4% 56.2% 0.0%
Debt/Equity ratio 11.9% 37.2% 0.0%
Interest coverage (x) -19.4 5.10 20.0
GROWTH RATES 10yr 5yr 1yr 2yr Fcst
Sales -- -- 297.2% --
Cash Flow -- -- 19.5% --
Earnings -- -- 0.5% 74.4%
Dividends -- -- -- --
Book Value -- -- 1,150.7% --
Previous Close 52 week high 52 week low
$0.39 $1.37 $0.36
P/E Ratio
17.0
Sector
Energy
Market Cap
$112.0 Million
Key Dates
Listed 15/04/2004
Balance Date 30 June
AGM 19/11/2007
Total Shareholder Return
(avg annual rate)
1yr 3yr 5yr 10yr
-60.6% -14.0% -- --
Earnings and Dividends
Forecast (cents per share)
Curr 2008 2009
EPS -6.5 2.3 6.8
PE(x) -- 17.0 5.7
DPS 0.0 0.0 0.0
Yield(%) -- -- --
Source: Thomson First Call Global Estimates
Note the the EPS 2.3 2008 6.8 2009 thats a 300% increase!!! Also the earning stability 77.4% compared to the market of 56.2%. Its a bargain.
Average
Risk 4
Higher risk
Growth 1
Highest
Income 5
Lowest
VALUE Company Market Sector
Aspect Earnings Model 0.69 0.96 1.42
P/E ratio 17.0 10.28 19.2
P/B ratio 1.41 1.47 1.78
P/E Growth Ratio 0.23 1.54 0.65
P/S Ratio 2.45 1.96 18.5
INCOME Company Market Sector
Dividend Yield -- 6.3% 1.9%
Franking -- -- --
Tax adj Dividend Yield -- 4.6% 1.1%
Dividend Stability 0.0% 94.2% 0.0%
RISK Company Market Sector
Beta 1.12 1.02 1.16
Current Ratio 2.59 1.63 6.01
Quick Ratio 2.39 1.08 5.49
Earnings Stability 77.4% 56.2% 0.0%
Debt/Equity ratio 11.9% 37.2% 0.0%
Interest coverage (x) -19.4 5.10 20.0
GROWTH RATES 10yr 5yr 1yr 2yr Fcst
Sales -- -- 297.2% --
Cash Flow -- -- 19.5% --
Earnings -- -- 0.5% 74.4%
Dividends -- -- -- --
Book Value -- -- 1,150.7% --
Previous Close 52 week high 52 week low
$0.39 $1.37 $0.36
P/E Ratio
17.0
Sector
Energy
Market Cap
$112.0 Million
Key Dates
Listed 15/04/2004
Balance Date 30 June
AGM 19/11/2007
Total Shareholder Return
(avg annual rate)
1yr 3yr 5yr 10yr
-60.6% -14.0% -- --
Earnings and Dividends
Forecast (cents per share)
Curr 2008 2009
EPS -6.5 2.3 6.8
PE(x) -- 17.0 5.7
DPS 0.0 0.0 0.0
Yield(%) -- -- --
Source: Thomson First Call Global Estimates
Note the the EPS 2.3 2008 6.8 2009 thats a 300% increase!!! Also the earning stability 77.4% compared to the market of 56.2%. Its a bargain.
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Sophie, M'tapu, (lazy I know)
Yeah the light will be brighter, yeah the earnings are amazing and, yeah, it's cheap.
It's just all this wading in cold porridge, in the middle of a dark tunnel, that's taking its toll.
Some days I wish the US and it's accompanying sub prime debarcle was on another planet.....in another galaxy.....far far away.
Yeah the light will be brighter, yeah the earnings are amazing and, yeah, it's cheap.
It's just all this wading in cold porridge, in the middle of a dark tunnel, that's taking its toll.
Some days I wish the US and it's accompanying sub prime debarcle was on another planet.....in another galaxy.....far far away.