Now that we all know what the prospects for MOS are i.e. damn good, thought I'd get a new thread going and just highlight MOS' attractions for any new investors.

Key highlights:

* Significant progress made, rationalisation programme almost complete

* Acquisitions integrated well

* International marketing network established

* Record order books, enquiry levels high, several new customers won

* Recent Director buys

From the Chairman's statement:

Outlook

Over the past year the management team has extended the product range, put in
place in-house manufacturing, rationalised the existing business and greatly
expanded the marketing effort, opening up significant new markets to MOS
products. Once the acquisitions have been fully integrated MOS will offer a
wider product range to a broader market and have a much reduced cost base. We
have record order books, we have attracted major new customers and we are
targeting new markets, worldwide. Overall, we have made good progress and the
outlook remains extremely positive.

Trading Update

MOS International PLC ('MOS'), the oilfield services company, announces that
trading is in line with market expectations. TURNOVER FOR THE YEAR TO 31st MARCH 2005 IS EXPECTED TO BE CIRCA 10M COMPARED WITH 1.05M IN THE YEAR TO 31st MARCH 2004.

MOS currently has an order book in excess of 7m for delivery prior to the year
end.

The recent acquisitions have integrated well, the rationalisation programme at
MOS is almost complete and that at Ansell Jones will be completed in this
financial year.

Tender and enquiry levels remain high and the Board is positive regarding the
future. Significant progress has been made and the business is well on the road
to recovery, with turnover forecast to show a further considerable increase, in
the next financial year.

On a turnover of 10million with a profit of say 1million, this company is on a P/E ratio of just 8 (market cap being around 8million at present). This company has been overlooked by the institutions and investors alike and is due a big re-rating soon IMHO. DYOR as usual.

Chad.

from today's end;
no. of shares = 125,200,000 [from new issue] + approx. 1,112,500,000 [i used the 8.9mill mark. cap divided by .80p price] = approx. 1,237,700,000 total number of shares.

market cap. is then 776k + 8.9million = approx. 9,676,240.

weighted average price (Taking todays 0.8p plus new issue of .62p) is .78p

If 1 million profit on 10 million turnover, then current share has .081p eps giving 9.7 pe

If 1.5 million profit on 15 million turnover, then current share has .12p eps giving 6.45 pe

The only thing that I do not like is that if they have made 1 million profit on their forecast 10 million turnover, then why are they raising a further 800k for working capital ??

Or is it that the potential 1 million profit won't be completely realised until they complete accounts and announce it all in August.......

It all depends on what profit % has been made on the turnover....if it is only 5% - this would almost halve the eps given above and almost double the pe's.

belisce6

I am not concerned about "profit % of turnover" for the coming results.

Profit for 2004-05 might not be particularly high due to restructuring costs. But say it is a million or a bit less on a turnover of 10million......MOS is obviously growing fast now and orders must be flying in, it's already been confirmed that orders are high. MOS have to be in a position where they are prepared to take more orders and bigger orders, so they have to have a lot of working capital to facilitate growth.

For the year March'05 to March'06 profit will be a lot bigger and will be a much higher percentage of turnover.

We aleady know that turnover for current year March'05 - '06 will be in excess of 15million, and we are only just into the current year, so who's to say it won't end up being 20million plus! And costs will be much reduced..

What are your thoughts on potential share prices?

some big buying going on this last hour. are we starting to see some volume now?

All this volume buying is making me nervous!!! Do I top up now? I honestly thought that sp would drift down before 28th but some buyers with much more dosh than me don't seem to be bothered. What can we read into this apart from its starting to look good.

Hi everbody first comment, on this board as an close observer of oil and mining stocks, plus Investor. Also my background as a an Engineering analyst, for a well known Company.

Article Taken from Shares Magazine.December 9th 2004. States: Oil and services minnow, (MOI) Moss international has taken its first step along the path marked 'CONSOLIDATION'. After recently appointing a corporate mover and shaker, Stuaet Pearson, a former Baker Tilly Partner, and corporate finance vetran apperently knows mergers and aquisitions inside out. With the oil services sub sector making much more positive sounds lateley - see decent results from Expro (EXP) and Hunting (HTG) recently its one to watch.....!
At the current share price and the recent issue of share yesterday. this is a prime targer for a share consolidation. Therefore after this has elapsed the share price will,take off before results are announced later on in the year.

Thanyou yours shadow: Any comments and feed back are welcome.

Total issued share capital= (1,012,000,000 + 125,000,000) = 1,137,000,000.
Using and SP of 0.8p market cap = 9,096,000 approx.
So, with possible profits for the year 04-05 being anywhere from say 1-2million on a turnover that could be anywhere from 10-20million, this puts MOS on a p/e of anywhere between 9 to 4.5. Both very cheap.

With a modest p/e of say 20, and a profit of say 2miilion in 05-06, price target of 3.5p approx. ?

Any thoughts/corrections?

today i bought my first lot of share at 0.79 it came as a sale, i was surprised
because everybody was buying at 0.84

same happened to me yesterday. 7 figure buys were going through @ 0.84 but i got my 175K at a 6% discount! Could this be down to the broker?
Being a novice at this game, i am confused as to how 8% (approx) of the share capital can change hands without affecting the sp. Is the placing keeping the price down?

Chad,

It has been confirmed that the "in excess of 15million" turnover figure mentioned in yesterdays RNS is for the current year that has just started March'05 - March'06.

So...

March'03 - March 04 Turnover 1.5million

March'04 - March'05 Turnover In line with expections approx 10mil

PROFIT approx 1 million due to resructuring costs. sp 3p??


March'05 - March'06 Turnover In excess of 15mil (maybe approx 20mil)

PROFIT approx 3-4 million sp 9p??

Just my thoughts DYOR

whichever way you look at it guys MOS is extremely undervalued, and once we get those results through people are going to realise that.

Chrissie, where was this confirmed, looks too good to wait and see what happens in next few weeks considering where it is heading?

Yes with turnover increasing the way it is the future looks very bright indeed. As I said before Mos is now going from strength to strength with order books bulging. We are only 2 weeks into the new year and PW is already saying turnover will be in excess of 15million I should imagine it will be well in excess of that figure.

Finals are usually a bit later than interims, so I would expect them July/August - September does seem to be pushing it a bit.

Average SP from 28 April on listing of new shares should aritmetically be about .78 - may dip on that date for a buying opportunity.

Notice the upward moving 50dma is about to cross the still slightly downward moving 200dma, so we technically miss a golden cross buy signal, since both dma's should be heading north to fully qualify. But it's what you might call a bronze cross, showing moderate upward momentum for the SP.

Everyone seems very excited and there are lots of old friends from other good threads here, so I don't want to be left out of any fun that's going.

There does seem to be quite good support at the 0.7p level and no dip on announcement of fund-raising is bullish. Can't see a problem with buying in now, but still perusing the interims to September 04 to see what can be gleaned from them. A trading update for end of March 2005 would be helpful in addition to passing references to turnover in the placing announcement. Turnover growing from 1.5m through 10m to 15m for year ending March 2006 is great, but the need for .76m working capital just now is a bit vague. Was this to replace bank borrowing, or other loans, to pay off accumulated creditors or for immediate future use to fund the increase in activity to get from 10 to 15m turnover. I think the last is intended, especially since if for historic reasons,t hey cannot have waitied until year end to discover they were going to be short of cash - it happens as you go.

I feel inclined to get in, but would really like one more solid piece of news that profitablility was following close on the heels of the rationalisation process and the welcome increase in turnover before finally committing, especially as Bos says with finals a way off yet. If the chart holds its strengths then we should be in good shape to benefit from next postive RNS. A little dip down towards 0.7p, then a decisive bounce up off the support line would be a healthy indicator, or a good break up through the mild recent resistance at 0.95p. I guess the sideways wander of the chart is a fair reflection of residual uncertainty at present.

Ho hum, keep watching for a while.

SD

stockdog

Very interesting post but, doesn't news overide anything the charts predict ?

"average sp after 28thApril aritmetically about .78"

But what about factoring in increasing turnover, new contracts and growth ? I think sp will be much higher than .78 . I'm thinking at the very least 2p. The results will tell all but yes it would be nice to get some sort of trading update soon.

chrissie - maybe, but not overnight - it will get there in staggers and leaps over the next several months. I was merely musing shortish term, trying to establish a reasonable entry point without too great a risk of disappointment.

my arithmetical (i.e. theoretical) average of .78p was stated in contrast to the support at 81.5p currently, so we draw the same conclusions from that. However, on 28th April (day of admission of new shares) there may be a minor correction below .80p - not significant compared to your 2p, but I'm always trying to improve my timing of buys and sells. I generally strive to pick on fundamentals and time on tech analysis, but admit to being amateur in both fields.

SD

Sorry, I was tired when I posted last night and meant to say that I think share price will be 2p - 3p around results publication time. I agree that there may be a dip around 28thApril. I am looking to buy more and looking for a good entry point too but, this company is very good at PR and a positive trading update or contract news would send the price up forever. IMHO

Cheers, chrissie. Let's hope we both get in where we want to! Be very happy to see you at 2-3p anytime this year. Then we can remind each other of the insignificance of this conversation. :))

SD

hello sd, nice to see you here.

Thanks Chad/Chrissie and others for this, I was perusing this for months and the threads on here helped me tip the decision to buy, looking to top up but will wait in run up to 28th when I may well recommend to some family & friends.
I rarely do this unless I'm sure of massive potential, to date only advised SEO/MMG last year and got both right for my folks, MOI could soon be my third recommendation.