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.

Why does this happen?

Human nature, taking profits ............. I think.

Anyway...............

Just in from Citywire...............

New boy Hamworthy is cooking on gas

Published: November 2004 By Graeme Davies, Companies Correspondent

Hamworthy, which develops systems to handle fluids such as waste and liquefied gas at sea, is enjoying growing demand thanks to booming industrial activity in Asia and strength in the shipping market.

Hamworthy (HMY), which floated at 109p in July, saw turnover increase from 46 million to 55.9 million in the first half producing profits of 3.4 million compared with 1.9 million last time. The significant increase in profitability is partly a result of unusually low profits in the first half of last year.

The company's products range from a vacuum flush toilet for use on board ship to systems that handle liquefied gases on board tanker ships and offshore oil and gas facilities.

Chief executive Kelvyn Derrick told Citywire: 'We are tied into the shipping, oil and gas markets and industrial growth. The shipping market is in a very strong state. Last year there was a substantial number of ships ordered and its held up very well. In fact it looks very strong through to 2007.'

The strength of the oil and gas market coupled to booming industrial activity, most notably in Asia, has fed straight into Hamworthy's hands. The company has responded to the recent pattern of global economic growth by moving operations eastwards and cutting jobs in its Norwegian operations. This makes commercial sense now that 70% of the world's shipbuilding is in China, Japan and Korea.

According to Derrick the 'hot' segment of the market is the transportation of liquefied natural gas. This is where Derrick sees Hamworthy's most promising opportunities. Gas systems provided 48% of turnover in the first half and as countries such as the UK and US import more natural gas, demand for transportation systems will increase.

Pump systems provides more than a quarter of turnover and Derrick is particularly excited about the company's CKL pump, which is used on offshore liquefied natural gas vessels.

Wastewater systems, based in Poole, provides advanced environmentally friendly ways of dealing with waste products on ships. The business has been hampered by a quiet period for the cruise industry although Derrick reckons it may finally be beginning to crawl out of its trough with the recent order of four new cruise liners by Carnival.

Progress is hampered slightly by the stalling retrofit market, which awaits legislation from the US as a federal level that could force cruise ships to adopt more environmentally friendly wastewater treatments and could open up a lot of business for Hamworthy.

Citywire Verdict:

Hamworthy is vulnerable to weakness in the global industrial economy but the diversity of its products and markets offers some protection against this. It also has few competitors in the liquefied natural gas sector so should not have to share the benefits of growing demand. The health of its prospects is underlined by a number of shrewd investors who have bought shares in the company, including AAA-rated fund manager John Dodd, of Artemis.

Hamworthy shares have risen as high as 187p since July and are off 3.5p at 174.5p today which reflects some profit taking. If market conditions are set fair through to 2007, as Derrick believes, then Hamworthy should continue its progress.

cheers GF.

From Shares mag 25/11/04

A huge boost to transporting expert, Hamworthy, is expected in the next three months with a new 50m order to fit eight liquid natural gas carriers with reliquefaction plants in competition with french company Cryostar. Hamworthy is favorite to win the deal.

Also, Shares are tipping Hamworthy as a BUY on page 10

Excelent move up in price today on nice buy volume.

cheeers GF.

Moving up again 2 quid not far off and news on a contract win is not far off either.

cheers GF.

I really have faith in this one GF. The potential is great.

MS

Nice 'n' steady again. 1 p/c every couple of days will do me. I shall be holding this one long.
Cheers...... Rob

Nice move up this morning but looks MM induced so far.

cheers GF.

One for the pension fund me thinks.

MS

Looks like our prediction of 2 by Christmas is pretty much on the cards. GF you must be pretty chuffed with this one seeing how you bought at about the same time as me when they were 'cheap as chips'.

Happy Investing Everyone!

Yup certainly am and glad we have overcome the little worries one or two had on results.

Hoping they get this new contract.

cheers GF.

I've just topped up for the 3rd time and will continue to do so through to 300 plus!

Up again exper and moving nicely.

cheers GF.

What a great stock Hamworthy is. I've been watching this stock for about three months now and each day it seems to get better. A nice early Christmas present.

GF

You first put me on to this and what a cracker it's turning out to be. So many thanks I owe you a very large scotch.

PS. Got any more?

MS

I noticed this a few months ago in Shares or Inv Chron mag and kept an eye on it until i took the plunge beg Nov at 1.65p.

This is far outstripping my other 2 high risk stocks which I am loosing on.

Looking forward to the 200p mark.

Accord, I see this as a safe investment. Please let me know what the high risk element is? I may be missing something. Thanks.

Safe indeed expert. Harry Hindsight wishes he'd bought more! I came in with accord.
My high risk was SEY - bought on momentum at 20.5p and now you can have then for less than 16. What a mistake. Should be fine in the long term (famous last words) but for now the big red figure in the portfolio is far bigger than the nice blue one against HMY.

Pond Life

Cheers MS, looking for more from these especially if they get that contract.

cheers GF.

expert

Sorry to confuse you, but I meant that my other 2 stock are high risk and that Hamworthy isnt.

Hope this eases your fears on this stock.