THREAD NOW CLOSED 3 May 2007

LATEST NEWS...(Check RNS service for details)

10/4/2007 - GME removes its minority interest in Patriot so shareholders enjoy 100% of all growth at Patriot
20/3/2007 - GME announces it will no longer support as NIM as non-core but instead focus on Patriot's US$123 order book
4/1/2007 - Cantor Fitgerald report 6.90% Holding
Decemebr - $31m orders reported
w/b 27/11 - Cantor buy >3%, Further order of $11m for rig packages
w/e 24/11 - Orders of $20m announced, but not profitable as expected
w/e 13/10 - Further $8m orders
w/e 27/09 - Further additions by Schroders to 12%
w/e 22/9 - Further orders of c $18m plus Gartmore stake increases to 20%.

Global Marine Energy plc is an Oil services company primarily bringing together and delivering rig component/equipment packages to international markets. GME is the holding company for two subsidiaries, Patriot Mechanical Handling and NIM engineering. Patriot provides the bulk of GME's sales.

GME is a niche player, there being only 1 or 2 alternatives for packaged equipment.
Patriot is a member of Source One drilling - a marketing alliance created by Le Tourneau Ellis Williams (LEWCO). www.source1drilling.com

Thread re-opened post results. Feel free to post away. News summary under picture.

Disclaimer: As always, Do Your Own research as no comments or foward looking statements posted here can be guaranteed.

This is an AIM listed company so high risk - only for investments you & your family can afford and are prepared to loose.



***Latest*** (also see estimated Share position analysis below @ 20 April 2006)
19 Sept - $9m from Brazil & America
14 Aug - GME announces $9m of orders including $1.2m NIM orders for Baker marine
These funded in part from recent raised capital.
11 Aug - GME delivers 11.2m stg (2005 4.76m). NIM issues notified in July addressed.
June - Cobra Ltd take large stake, a few previous buyers add
June - Placings at 15p
25 May - Paul Findlay promoted to Group CEO. S Wild (NIM subsid) off board.
10 May - PMHH signs up to http://www.source1drilling.com alliance
8 May - PMHH huge $8.6M china order+announces multiple chinese deals
5 May - PMH signs exclusive deal with winch company EMCE/Stokvis
4 May - Shroders increase to 11.16%
19 Apr - Shroders buy 10.10% 4,525,000
4 Apr - Gartmore adds stock now 17%, CAML buys 3.52%

You only need to be as patient as the >3% holders, Stockdog ;-)

Presumably Gartmore didn't buy >10% to wait 3 years for some payback, nor will Mr Wood expect to be sitting on a 107,500 loss (actually larger than that as he can't sell at the offer!!) less 5,000 per month he's losing in interest (@6%) ...for long.
He's racked up 122,500 loss in 3 months!!

Patriot up 40% @ 38c

Owl

Please tell me some good news.

Getting a bit depressed about the sp. It's bad enough when it doesn't rise but when it goes lower ......I just cannot understand why?

Got in touch with Bankside and spoke to Micheal Padley.

All si well!

1. NIM have plenty of work but have had a problem because of shortage of welders, they are presently recruiting more welders so problem will soon be rectified.

2. They will probably issue a trading statement in early April.

3. Results for year end 31stMarch will hopefully be published in June this year. (we had to wait until Sept last year).

4. Patriot going from strength to strength (his phrase not mine).

So all in all things seem to be going okay and we will have to be patient. MP said things looking very good indeed, from April onwards.

I know a lot of ths has been posted before but I'm thinking of newish investors etc.

Can give you more excellent news re Korea, Chrissie.

I've forwarded to your email.
Though unfortunately the sp can only respond if people buy.

Keep eyes peeled on two co.s.
One begins in H and makes cars!..also rigs/drill ships
The other S stereos & TV's ...also rigs/drillships
DYOR

Hyundai & Samsung - Korean Heavy Industries.

By my calculations, Mr Wood has now been paying the company over 8k to come to work each day if averaged over 28 months - a grand total of 234k!!

That's a huge incentive to sort the situation out as this increases at c4.5k per month, or average 148 for each of the 28 months.

How long this situation is sustainable is anyones guess. Even if I had 25m, I'd not want to be loosing an increasing close on 10k per month and effectively paying the company I work for to work for them!

Someone loves GME, big rise & volume around lunchtime from 18.25 to 19.50.

This will be an interesting week.
But IMO we need to wait till after April 5th to see the real picture.

Owl

As you say a nice rise today I was told by Padley that they hope to get a trading statement out in early April so fingers crossed.

Chrissie, did he say when?
I got the impression they're waiting till after April 5th (so people can take capital losses). Those left after will be longer termers, so should be supportive of the price.

Topped up with 10k today.

I think you are a very wise Owl for topping up. Padley didn't say exactly when but you're probably right about 5thApril.

Owl

You got mail!

Chrissie
So have you :)

Well, not sure how bad is bad for 2005/06, but it does seem now to be behind us. As I wondered, a full order book does not necessarily translate into bookable revenues in the year in question.

Looking at next year's t'over of 20m on a gross margin of about 37.5% gives gross profit of 7.5m, less 5m oveheads and tax at 20%(?) leaves 1.6m net profit after tax. With approx 44,800,000 shares in issue at 19p, gives a forward PE of 5.32. If this should be nearer 10, rising to nearer 14 when the interim trading results prove the prospect, then the SP should nearly double over the next 6 months and then rise to somewhere approaching 50p by beginning of calendar 2007.

Assuming everything else remains equal . . .

sd

Stockdog/Chrissie & anyone else who look in here,
you must read the whole research note - it's excellent.

'Bad' means 12m not 13m rveneues. 12m's not bad - it's nearly 3x last year. But it gets better. 2007 is not 17m, it's 20m (previously we'd have to wait till 2008 for that!!), it gets even better (and this is my favorite line in the note.

'potential current multi year orders could rise sharply to 50m'.

This is not ramping, this is objective analysts who met Wood earlier this week and who live or die by the quality of their analysis.

All in all it's great news. They've been transparent by issuing early guidance (never before), they've announced early issue of results (never before) etc

Here's the link (you may need to sugn of free account):

http://www.edisoninvestmentresearch.co.uk/

This may have been posted already but here is the link anyway:-

http://www.oil-barrel.com/advisers/hardman/GME_March06.pdf

Thanks Technotamed - great note. Reminds me of that song:-
Catch a falling knife
And put it in your pocket
Save it for a rainy day

Well it's raining and the ducks are loving it!

Looking ahead to 2008, somewhat prospectively rather than P2 as you might say.

Turnover 30m ??
Margin 40%
Gross profit after D&A 12m
Overhead/Net Interest, say 8m ??
Net profit 4m
Tax @ 30%
Profit after tax 2.8m
EPS 6.25p
EPS Growth 41%
PE 2 years forward 3.12
PEG 0.08

If reasonable PE 1 year forward is 14, then at EPS 4.41p for 2007, suggests an SP of 61p

If reasonable PE 2 years forward is 12, then at EPS 6.25p for 2008, suggests an SP of 75p

From 19.5p to 75p over two years is 96% p.a. compound growth. On a share that we now know so well, with a proven management that have turned it round into a profitable business selling into a ravenously growth market - that's good enough for me.

With my average buy price at 48p over the last year, I can't think of a better place for my money, or coincidentally where the emotions will be so satisfied.

Time to top up, if I can get in quick on Monday morning.

sd

All I need is another 60 days like today! Definitely feel as though bad days are behind us.

full price being paid now after more institutional buyin recently!