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.

This is another one the market has been slow to notice. Good recommend from one of the tipsters on HMY. can't remember which one but it was good to read!!

Told you lads, me and Jason in from way down, I dare not look, but its still way undervalued and trades on a lowly historic P/E never mind forward P/E.

The Broker floating it made a 'right cock up' and thats the truth I have heard from the city, should have floated at 180p, but who cares know what I mean.

cheers GF.

Hi GF. Finally returned from my travels to see HMY has been doing nicely in my absence. Can't believe how much these have gone up over the past few weeks and they still have plenty of upward movement by the look of the chart. Sticking my neck out, but I can honestly see us reaching 2 by Christmas. We should be due some results on the 22nd of November which will spark a few brokers into life. In the meantime, enjoy the ride!!

Ian, if your reading this, could you have another look at the header of this thread for me?

jason,

No problem - what would you like it changed to? Post here and I will get JT to chnage it when he comes in,

Ian

Cheers Ian, if we could revert back to "Hamworthy global oil services leader with rapid growth potential" that would be great.

Thanks again, Jason.

Will get it done as soon as JT is here.

Ian

Jason,

Sorry about this, but we now have a policy of not chnaging thread titles - we believe it could be open for abuse - obviously not by you, but we have to maintain policy, so if you want the new thread title, you can start a new thread, or carry on with this one.

Apologies for confusing the issue - hope you understand,

Ian

Ian

Ok, no problem, will stick with this thread for now but may start a new one later in the year. Thanks for trying.

Cheers, Jason.

What a nice little earner this is. Any idea's for the long term?

MS

Moving up nicely, still way undervalued Mickey on a P/E of around 13 now.

cheers GF.

mickeyskint - future growth prospects for HMY look extremely good especially if they get major orders from Exxon and Conoco who are testing the LNG prototype plant aboard their LNG carriers. Should be a small div paid next year so add that to the growth we have already seen and you should be looking at a few extra quid in the bank!!

Have a read through some of the earlier posts to get a better picture of the companies prospects.

Another move upwards, it just gets better and better.

Could be 2 by bonfire night at this rate! It's good to be home, lol!

Now what colour shall I have my new DB9 in?

lol

MS

Mickeyskint - Careful now, we dont want to tempt fate and see this baby nosedive like my warthog shares :-(

OK I'll hang on for a bit longer. Delivery is about 5 years anyway.

MS

The mms are in trouble with this stock. Up 10p today, persistent moves up all day one of the two mms cut the nms from 10k to 5k and both widened spread from 5p to 7p to discourage buyers. They ain't got none! over 1 million shares traded today.

Going to 200p+ pdq imho!

Strong buy recommend in Shares mag. today, that's why the price has risen. Hope it carries on up!

Nice bit of price correction this morning to bring us back below the upper bollinger band. SP had been getting ahead of itself over the last few days, which has been great to watch but unsustainable over the longer term.