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NMS - Neptune Marine Services

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Corsair said:
Hi Plasma,

Do you understand the Neptune strategy? If so, the no dividend part should be pretty obvious, being a growth company with limited spare funds. I certainly wouldn't like to see them take on more debt to fund a dividend.

As for putting the cap out, i wouldn't expect this to be the last cap raising at all but really what is wrong with that? If they keep the exact fleet of vessels and ROVs they have now, tell me where they'll be in 3 years time... at the bottom of the ocean would be my guess.

The whole idea is developing into a globally recognised company that can put forward tenders for large contracts and make a lot of money. Ultimately this is the only way ahead for Neptune unless their services change, which is highly unlikely at this stage.
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Yeah, yeah, yeah.....onwards and upwards, I know the score....just a pity they don't start using some of the hard earned company coffers.
Also, interested to know if you took advantage of the last great capital raising at 95c and, if so, how did you feel when the SP hit 26.5c??
 
hahaha Plasma you sound like a cynical old bugger who's been holding for a long time :D

There's simply no way for them to become a $3-5+/share company unless they do what they are doing now. Being conservative and not expanding would be a deadly thing to do.

They just aren't the sort of company/industry for which it's possible to go from $0.50-$2 overnight (unless of course they get big enough to snare a very large contract with a big company). But in general, they're never going to "strike it" rich by discovering an elephant reserve of oil or high grade ore bodies. Better going for a small/midcap miner for that possibility.

Onward and upwards ;)

ps: i didn't participate in the 95c raising cause obviously the market price made it a crazy idea. I'm not in this one either. More than happy with my fairly decent sized options holding, which is fortunately enough in the green.. Now just waiting to convert when the time is right.

Plasmapark said:
Yeah, yeah, yeah.....onwards and upwards, I know the score....just a pity they don't start using some of the hard earned company coffers.
Also, interested to know if you took advantage of the last great capital raising at 95c and, if so, how did you feel when the SP hit 26.5c??
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I could see the NMS share price increasing significantly and quickly from $0.50 to circa $2.00.

The share price is low compared to other companies with similar sales and profits which have share prices well over $1.00.

Look at the significant growth in sales and profits over the last two to three years. I think the share price is held down by negative sentiment in the market that could easily change quickly. The price only has to go up a bit for market watchers to notice it go up, they buy, the price goes up, more people notice, the price goes up a bit more.

Except, now they are issuing lots of shares I expect the price to go down, regardless of company announcements, into the 0.35 to 0.40 range. You may not agree but I do feel there are an awful lot of shares being issued and the announcements usually don't help the price a lot.
 
r m said:
I could see the NMS share price increasing significantly and quickly from $0.50 to circa $2.00.

The share price is low compared to other companies with similar sales and profits which have share prices well over $1.00.

Look at the significant growth in sales and profits over the last two to three years. I think the share price is held down by negative sentiment in the market that could easily change quickly. The price only has to go up a bit for market watchers to notice it go up, they buy, the price goes up, more people notice, the price goes up a bit more.

Except, now they are issuing lots of shares I expect the price to go down, regardless of company announcements, into the 0.35 to 0.40 range. You may not agree but I do feel there are an awful lot of shares being issued and the announcements usually don't help the price a lot.
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the SP has suffered for a long time due to many factors - the unrealistics levels it has reached previously due to the favoured status; the misunderstanding of who NMS are and the industry they are really a part of (not mining services); the misunderstanding that the oil price directly effects their performance (during low oil prices they secure plenty of maintenence work, and high prices deliver development work) and the general ignorance of analysts and investors towards the energy services sector, thru not understanding how engineering is constant delays/missed targets/more delays. the end result is always the same.

i remain very comfortable with this latest placement & spp, and the aims they have for the funds. the benefits will come, in time.
 
Corsair said:
hahaha Plasma you sound like a cynical old bugger who's been holding for a long time :D

There's simply no way for them to become a $3-5+/share company unless they do what they are doing now. Being conservative and not expanding would be a deadly thing to do.

They just aren't the sort of company/industry for which it's possible to go from $0.50-$2 overnight (unless of course they get big enough to snare a very large contract with a big company). But in general, they're never going to "strike it" rich by discovering an elephant reserve of oil or high grade ore bodies. Better going for a small/midcap miner for that possibility.

Onward and upwards ;)

ps: i didn't participate in the 95c raising cause obviously the market price made it a crazy idea. I'm not in this one either. More than happy with my fairly decent sized options holding, which is fortunately enough in the green.. Now just waiting to convert when the time is right.
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Hey....ease up on the old caper Corsair....sheesh.
Yeah, I have been holding for some time and, intend on holding for quite some time to come.
Been there, done that, in the mining sector....did quite well too, although I could have done a damn sight better if I'd held longer.
I just hate capital raisings is all....waters down the pool and, things can go bad if the cards aren't played correctly.....in fact, they can go bad even if the cards are played well.
I just wish I could raise funds in a smilar way for my own business....:rolleyes:
 
I guess all holders of Neptune must be very pleased with themselves. The stock is up 120% against the all ords 30% for the last six months. I'm sure there is another surge mounting, it will not take much, another round of announcements, plus the end of year results to be made public.
 
oh hooray - a post finally.

despite all the good media, and SP recovering well, i have held off posting on NMS, just awaiting anyone else. i think its 7 weeks since the previous post.

clearly the sector is still ignored, whether by traders or investors. so no matter the result this thursday, i dont expect anything positive from the SP.

more patience.
 
EPS SP P/E
NMS 8.21 0.76 9.25
MRM 14.50 2.63 18.13
CLO 7.33 0.86 11.80
WOR 161.1 28.69 17.80

Neptune is still relatively cheap compared with the above. Median P/E for Neptunes sector is 14.3
See it comes under transport & logistics in the Australian. Don't know why?
Still a way to go to reach its all time high of $1.37
 
Why buy rov's when you can buy a company that has a fleet of them!!!!. Real quick way to build that part of its business. I wonder how many rov's STS has and how old they are and what condition they are in. I guess NMS know what they are doing. Triton has just brought out an updated model.
Wonder how many rov's you could buy for $31
 
maungatapu said:
Why buy rov's when you can buy a company that has a fleet of them!!!!. Real quick way to build that part of its business. I wonder how many rov's STS has and how old they are and what condition they are in. I guess NMS know what they are doing. Triton has just brought out an updated model.
Wonder how many rov's you could buy for $31
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heres your answer........

http://stsrov.com/rovspec.html

i am awaiting a reply from STS to confirm what projects they have taken part in over the years, just to gain an understanding of who they are in the scheme of things.
 
From a search this morning, STS has all those ROV'S in SOB's reference web page. I think in was eight or nine ROV's. Lets hope they are all contracted out, as we type.
Mr Lange must have some major tender news coming our way in the next two weeks.
 
confirmed today STS has eleven ROV's, even better. I think this purchase fits in very well with NMS's master plan.It just gets better, hats of to the NMS management.
 
todays brr audio was gold.

WHY? - cos lange took time to explain in depth to a couple of analysts who will then spread the word to their clients.
how long that process takes i dont know, but it wont be long.

anyway i just to share the highlights i found from todays brr.

a good & simple explanation of the earnings drop in 2nd half, due to the dry docking of one vessel. considering the $$ they bring in, it shows how important they are, and how important it is to acquire more, or ensure the relationship with groups like mermaid remain strong.

a lengthy explanation of the contract in the north sea. clearly it is now the most important contract to date, and for several reasons.
firstly it is showcasing nepsys to the major O&G companies, specifically how nepsys can provide longer term certainty to subsea infrastructure (to a limit of 30 metres currently, but further R&D providing greater depths in the future)
secondly this is an ongoing contract, where they return annually to attend to issues to the rig structure. as mentioned, the north sea only allows such work during summer months, therefore ensuring nepsys personnel arent tied up for any long term period on one project.
i was impressed with the detail given to explaining nepsys, and specifically the example in the current north sea project. manned platforms demand permanent welds, and only nepsys and hyperbaric welding provide such. the fact nepsys costs about 1/4 of the only competition confirms the enormous future for nepsys technology (and for us long termers the original reason for investing in neptune.)

the establishment of the brazil base by the end of 2009. reading the constant industry media from brazil says brazil are determined to bring these huge fields online ASAP, with the government determined to use the income to run their social programs. sending some of the newly acquired ROV's to brazil tells me they do have work lined up - its just a case of getting established there.

lange spoke of acquiring 2 deepwater ROV's - i can assume that they may also be from these distressed sales. i highlighted a while ago that several smaller companies purchased these expensive units during the $100+ oil days, only to find the contracts dried up and work vanished. additionally another vessel is to be purchased - with a capex of $15m on the 2 rov & the vessel, either these sales are real fire sales, or its just another dinghy they are buying.

the cocono survey work i found interesting - which fields ?
their karoon JV is in the news currently, and will prove to be a significant field once work begins. being onside with cocono when the JV contracts begin will prove lucrative.

an attrition rate of 2% of staff is important in this industry - experienced, qualified, respected staff, especially in the technical arenas are gold, and to be able to retain them to that degree is superb. hopefully that continues.

i did like the way lange detailed the pluto work - the LNG project that IS HAPPENING. it was mentioned $20m will come from the spool tie work, and the same again from other jobs. $40m overall aint to bad huh ?
and having neptune staff based at woodsides HQ - interesting.

VERY BULLISH on the STS acquisition - not too surprising considering the workload the rov's are likely to get. i think lange did well to emphasise that this was an acquisition that will go ahead, especially after the recently abandoned US deal.

a good explanation of the geomatics/survey business, and how fugro dominate that field. to gain 'tens of millions' of revenues in such a high margin business is very pleasing.

for the risk adverse, a neat explanation of the diverse customer base neptune now work with - nobody provides more than 10% of earnings, compared to our previous reliance on apache for work.

i personally was extremely pleased the session extended into the Q&A session - it is often these sessions bring out more info than the presentation itself. i would like to know what the question was which lange answered referring to 'lump sum projects'.

ALL IN ALL, LOVED IT.
 
Neptune Marine Services (NMS)

Neptune provides integrated engineering solutions to the oil and gas industry. It also provides underwater survey and welding work, diving services, ship surveys and repairs and maintenance. There’s growing demand for the company’s services, so expect Neptune to be a beneficiary of the Gorgon gas project in Western Australia.

This is a buy recommendation on the bull.com.au by Richard Batt of Shadforth Financial Gr.

About time it got on someones radar.
 
Neppy also had a BUY recommendation in Saturday's West Australian....with a price target of 94c.

SOlid movement in Neppy again today....jumped up another 4%

With 3,000,000 units of buy orders and only 872,000 units of sellers this stock is moving along very nicely indeed.
 
Great month for neptune. Share's traded is increasing. Looks like a great ride for anyone from here. But to the true believers, it's what we have been waiting for.
Further good news, new contracts will send it higher.
 
Grogan approved 50 billion, project to be fast tracked.
Subsea sector, everyone's a winner baby that's for sure.
So let the good times roll.
 
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