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.

Interesting article found in I.C. indicating an increase in expenditure by the big oil companies which will have a positive effect for the oil services. Hamworthy is not mentioned directly but similar companies such as Sondex are. Posted below for any interested parties.

Oil services outlook brightens

Business is picking up for oil services companies after a long period of weakness. Consensus estimates for the growth in capital expenditure among major oil companies now stand at around 10 per cent, compared to five per cent at the start of the year. Some think it will be as high as 17 per cent.
The main pick-up has been onshore in the US and Canada, where high oil and gas prices have encouraged an every last barrel mentality. There has also been more activity in the North Sea; Shell said last week that it was increasing capital expenditure in Europe by $150m this year. Most of this will go on projects where there is a quick payback, making the most of high oil prices.
Over in the US, where oil service companies are much bigger, share prices have posted solid gains. The chart below shows the S&P Oil Equipment and Service sub-index over the past year (this includes such giants as Halliburton, Schlumberger and Baker Hughes). In the UK, oil service companies are smaller and more specialised, and don't have their own index. But there have been some notable gains, particularly Sondex, Hunting and Abbot.

GF, my hunch on the price moving up this morning was correct, lets see how things move on today.

loaded up with some more this morning.

nice one chester1, price is moving up nicely now.

UP 4p thats more like it, some nice buying going on aswell.

cheers GF.

The Shares article (Post 19) suggested HMY should be on a par with the likes of Sondex, which has just been rated as a buy at 223p by I.C. this morning. I think this share has quite a way to go and would not be surprised to see 200p - 220p by the end of the year.

Yup you could be right there Jason.

Heres an interesting factual table............

Hamworthy's strong market position (in the world market) is illustrated in the table below for product
sales during 2003:
Percentage Hamworthy
of world market
market share
Product share ranking* Principal competitors

Deepwell gas pumps 95 1 Shinko, Teikoku, Desmi
Deepwell product/chemical pumps 8 3 Framo, Marflex, Presvac
Pump room pumps 15 2 Shinko, Naniwa
Engine room pumps 12** 3 Naniwa, Taiko, Desmi, Allweiler
LPG gas reliquefaction systems 53 1 TGE, LGE, Nissin
VOC gas reliquefaction systems 47 1 APL, Aker Coolsorption
Inert gas equipment 22 2 Smit, AP, Kashiwa, Aalborg Ind
Conventional water treatment 14 1 EVAC, DVZ, Taiko, Isir
Advanced water treatment 44 1 Zenon,
Scanship, Rochem


cheers GF.

I'm amazed at the number of trades going through today, has this share been tipped in another mag or something? If this keeps up the 2 mark will be looming quicker than I thought.

Good day Jason, makes up for yesterday.

cheers GF.

Broker forecast from Colin Stewart as below.


Broker Date 01 - 09 - 04
.................2004....................................2005
Pre-tax( ) EPS ( p ) DPS ( p )...........Pre-tax ( ) EPS( p ) DPS( p )

5.50 .......11.00......4.70...................6.80.....14.00.......5.40

Tipped in the Mail On Saturday. Nice big piece on how GAS is important to the world and its growing share in World Markets. Hamworthy well worth buying into.

cheers GF.

Must say....I do like this one.

Nice way to start the week guys! Let's hope it keeps ticking up like this.

Yup up nicely.

cheers GF.

Still moving northwards. Heres the tip recommended by the Mail.

In saturday's mail hamworthy received a good write up from brian o'connor.

The main focus of his article is on the fact that with oil resources starting to struggle with demand the spotlight will switch to gas.
He says

There is loads of gas to export from countries like russia, libya and egypt.
To move gas, you need either a pipeline or freezing facilities. At minus 160 Celsius, you get liquefied natural gas (LNG) which can be shipped.

The US gets just 1 percent of its gas from LNG imports at present but this could rise to 15 percent by 2025. That brings us to Hamworthy, the gas and pumping systems group in Poole, Dorset, which floated on the Aim market in July. While being shipped, gas must be kept frozen lest it heat up and "boil off."

Hamworthy is a leader in developing a system to re-freeze it. This should enable oil companies to order much more efficient diesel-powered tankers.

Building of gas tankers is growing fast. Stockbroker Hargreave Hale says 33 tankers will be delivered this year, 45 next year and 59 in 2006.

Hamworthy has already landed orders for pumping and sealing systems and should land more. The order book is UKpound 98m, nearly double its market value. Operating profits rose to UKpound 6.2m last year on sales of UKpound 93m.

cheers GF

Thanks for posting that GF.

Cheers J.

Yup up another 4p on the day, good stuff. Cracking company. It took Sondex a while to get noticed in the City and I beleive its not even really started with this one.

cheers GF.

Should be more northward movement in this over the coming days.

cheers Gf.

GF, The fact that Sondex is one of the companies tipped to go into the FTSE Small Cap is a good indication of the potential for HMY. As you mentioned once HMY gets noticed by the City it will really get going.

Well its up again Jason and all buys showing.

cheers GF.