Brokers Hargreave Hale gave the following Valuation for HMY

VALUATION
The nearest comparisons to this Group are Sondex, trading on a current year multiple of 14 and Weir Group which typically trades on multiples of 12 plus. We would argue that Hamworthys prospects are brighter than both these companies in view of the strong order book and the global positioning. Fully taxed earnings of 13p this year and 16.5 p for the 2005/6 end March, suggests a current year PE of 9.9x and a prospective PE of 7.8x. There is a prospective yield in excess of 4%. If trading on a similar PER to Sondex the shares would be valued at in excess of 180p. We would argue that a premium to Sondex is justifiable, in particular because of the potential ramp up to sales as a result of the new product pipeline now gaining client acceptance in what is in any event one of the fastest growing markets in the world.

"Shares" Article relating to Hamworthy (HMY) posted below for info.

With a following wind these shares should double over the next year or so.

Some catty folk in the City say the flotation last month by Collins Stewart
could have been handled better, i.e. at a higher price. It was certainly over
subscribed but the rating is half that of similar oil sector service companies
including Sondex.

Just started to tick upwards.

cheers Gf.

Jason , we still have the old header.

cheers GF.

All buys no sells. Suprised we havent had a move upwards.

cheers GF.

Blimey look at the buy volume and no move northwards.

cheers GF.

GF - away on business at moment but will sort the header out when I get back next week. Good volumes over the past couple of days and looks like we will see a further move up before the end of play if the current buying continues. Can't believe how well these have done over the past couple of months. I will try and check back later today to see how things are going.

Cheers Jas.

Going great Jason. Really moving today. Hope you have a good time away.

cheers GF.

Wow look at the buys coming in.

cheers GF.

Well we lost some ground at the end of the day but it looks like another upday in the morning. MMs need stock to satisfy demand.

cheers GF.

Going great guns and please remember this, this one was originally going to be floated at 180p.

Going fantastic and time to jump aboard.

cheers GF.

Blimey the first down day in what????????????????????????

Two Months???????????????????????????????????????????????????????????

regards GF.

Who's Oliver??

ME. Strange we didnt get a rise on this one today, I was sure the MMs had plenty of stock on the books. Never mind it could do well monday.

cheers GF.

Looks set to rise again.

cheers GF.

I hope so! I took profits on NLR to buy into this one as I think all the herd are moving on from NLR at the moment. I hope to buy back later but HMY looks a good bet. fingers crossed! I have spent this evening adding my losses over the past few years---seriously upsetting, I have a lot to make up! I still I'll start a biggest loser competition!! bet it would be a well used thread.
Come on HMY!! hope you feel better soon GF

Think your on a solid one MP.

cheers GF.

Tipped in the I. C. today.

Good stuff all be it 2 months late.

cheers GF.

INVESTORS CHRONICLE

Tips:
*Buy British Airways (BAY.L) at 203p - Pendragon (PDG.L) at 278p - Hamworthy (HMY.L) at 163p - Albemarle & Bond (ABM.L) at 110p - Fountains (FNT.L) at 140p.

cheers GF.

Heres the piece from the IC BUY......................

29 October 2004

HAMWORTHY (HMY)

163p - Aim - As a profitable, well-established company with a strong product range and impressive levels of demand, Hamworthy was somewhat of an anomaly when it joined Aim earlier this year. Hefty demand from institutions offered a clue to its high standing within the investment community, and the impressive rise in its share price to its current high suggests that this support was well-placed.

Hamworthy designs and manufactures innovative marine and offshore fluid-handling systems, focused on gas-handling, pumping and wastewater management. It joined Aim to move into the next stage of its development and to capitalise on market opportunities. It will now concentrate on both organic and acquisitive growth, as it looks to consolidate a fragmented industry.

And there should be plenty of opportunities for growth, given Hamworthy's strong product range. Its customers are international shipyards, ship owners, and oil and gas companies. Their need for leading technology, and the impact of increasing environmental and safety regulation, leaves Hamworthy well-placed to build on its strong foundations - dating back to 1911.

The company's emphasis is now on developing a pipeline of products to drive growth beyond 2007. To date, this is an area in which Hamworthy has excelled - it can boast 16 per cent average year-on-year annual sales growth in the past three years. During this period, sales have jumped from 64.4m to 92.9m, while profits reached 5.8m, compared with 4m in 2002. And a 98m forward order book provides good levels of visibility, which bodes well for the future.

Hamworthy is split into three divisions - pump systems, gas systems and wastewater management. Of these, the main revenue generator is gas systems, which contributed sales of 39.4m in the year ended 31 March 2004.

Its liquid petroleum gas (LPG) reliquefaction system minimises cargo loss and reduces emissions, and led this market in 2003. But because it has such a strong foothold in the market here, there is only limited scope for LPG growth. Its liquid natural gas (LNG) reliquefaction systems enable ships to be powered by more efficient and lower-cost slow-speed diesel engines, although the potential for real growth here is a few years down the line. In the nearer term, its VOC recovery systems, which reliquify hydrocarbon gas emissions from crude oil for storage, provide the most growth potential.

Pump systems accounted for around 36.5m of sales last year. The main products here are deepwell pumps, pump-room systems and engine-room systems. They're supplied to LPG carriers, product and chemical tankers, and crude oil tankers. Its deepwell pumps will dominate growth here.

Finally, the wastewater management system achieved sales of 13.5m last year. The focus is on advanced, environmentally-friendly solutions for the treatment and separation of liquid waste products. A key theme running through all offerings is environmental friendliness - and this is an area that is likely to see further legislation.

Across all three divisions, spares and services account for 20 per cent of revenues, and 40 per cent of profits.

So, overall, Hamworthy is well-positioned in its markets and is well-run by a strong board. Legislation should help to underpin strong demand, while low-cost production should keep it competitive. Dividends are expected next year, and the is stock trading on an undemanding multiple. Buy.


Ord price: 163p Market value: 60m
Touch: 161-165p 12-month High: 165p Low: 123p
Dividend yield: See text PE ratio: 11
Net asset value: 14p Net debt: 140%


Year to Turnover Pre-tax Earnings Div per
31 Mar (m) profit (m)** per share (p) share (p)


2002 64.4 4.0 - -
2003 87.1 4.7 - -
2004 92.9 5.8 11 -
2005* 112.1 6.9 14 -
% change +21 +19 +27 -



*Collins Stewart estimates
**Pro-forma
Market makers: 2
Normal market size: 5,000
Last IC view: 2 Jul 2004, page 17
At float

BULL POINTS
Strong order book

Good institutional backing

Impressive product range

Well-placed for growth

BEAR POINTS
Limited broker coverage

No track record as a quoted company



cheers GF.

Looks good to me GF I'm in already.

MS