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.

It means 2 things - first greater demand for MOS products/services. Secondly greater demand for MOS's competitor's services (which they can't meet!), and so for MOS...DEMAND.

Just checking - thanks, OWL. Sounds good.

No problem, Stockdog. Yet more news:OPEC increased for 5th time this year - another 500k barrels per day. Issues with refineries mean we need more pipes, more oil pumping means more servicing needs, and oil inventories have fallen AGAIN this week...its all about DEMAND ...expecting MOS to make a profit next year (if not this) is more than wishful thinking...

Owl, correct me if I'm wrong (a dog loves a good beating) but I think Opec agreed to raise their quota by 500kbpd to the level already actually being output. So fat difference!

Also in terms of future increases, all laid at Saudi Arabia's door usually, I've heard rumours that S.A's reserves have remained at a moreorless constant figure for many years - funny that, since they pump so much out and havent discovered many new wells to speak of. So how will they meet the 4th quarter's needs this year I wonder?

Perhaps the price will rise to a point that makes people turn off the second bar (or car).

sd

Sd - yes you're right.
OPEC were reporting on fact they're doing all they can. It's a lack of refining capacity (as well as apparent oil shortage which they deny) putting the price up. Either way, not much spare capacity & MOS should benefit with govts wising up.
(ps if you fancy a good read, Jim Rodger's 'Hot Commodities' Wiley, 2005).

I'll try to get to it after Hugh Heffner's "Hot Babes" Willy, 6.5"!

RNS Number:6298N
MOS International PLC
15 June 2005


MOS International plc

Issue of debt and additional listing

MOS International plc, ("MOS" or "the Company"), the oilfield services business,
announces that it has signed an agreement to issue a conertible loan note with a
nominal value of 500,000. The initial monies will be used as additional working
capital to fund the Company's expansion.

On Friday 10 June 2005 MOS agreed to issue a convertible loan note with a
nominal value of 500,000 to Montgomery Equity Partners L.P. ("MEP"). MEP
advanced 250,000 on 13 June 2005 and 25,000 of this was converted into
5,182,850 new ordinary shares of the Company at approximately 0.482p per share.
The remainder of the loan will be advanced as soon as the first tranche of
shares is admitted to trading.

It is the intention of the parties that, subject to compliance with the terms of
the loan note, the whole amount is converted into share within six months.

The convertible loan note will pay a coupon of 7 per cent. and the loan is
convertible into new ordinary shares of the Company at a price equal to the
lower of (i) 120 per cent. of the volume weighted average price on 10th June
2005; or (ii) 80 per cent. of the lowest volume weighted average price of
ordinary shares of the Company for the five trading days immediately preceding
the date of conversion of the loan stock.

Under the terms of the loan note, MEP has also been granted an option which
entitles it to subscribe from time to time for up to 500,000 ordinary shares in
aggregate at a price per share equal to the lower of (i) 80 per cent. of the
volume weighted average price on 10 June 2005 or (ii) 80 per cent. of the volume
weighted average price on the date the relevant notice of warrant exercise is
given to the Company. The option is exercisable for a period of two years from
10 June 2005.

MOS has also entered into a standby equity distribution agreement with Cornell
Capital Partners Offshore L.P. ("CCPO"). This agreement provides for an equity
subscription facility of up to 1.5 million which can be drawn in tranches of up
to 37,500 every five trading days. Any amounts utilised are converted into new
ordinary shares of MOS at a price equal to 95 per cent. of the lowest volume
weighted average price for the five trading days immediately preceding the date
of that utilisation. This agreement also requires the payment of a fee of
45,000 by MOS, which has been satisfied by the issue of 7,485,030 new ordinary
shares of the Company at approximately 0.6p per share, treated as fully paid up.

The total funds available to MOS under the arrangements described above will be
2 million and such funds will be used to provide additional working capital for
the Company.

Accordingly, application has been made for the admission of 12,667,880 new
ordinary shares to trading on the AIM market. The new ordinary shares will rank
pari passu with the existing ordinary shares of the Company and dealings in the
new ordinary shares are expected to commence on 21 June 2005.

Philip Wood, Chairman, MOS International PLC commented:

"This agreement gives us immediate monies to supplement our existing working
capital and also gives us a substantial sum in reserve which we can draw down,
if required. The initial monies will be used to fund new orders that Patriot
Mechanical Handling have recently won."

ENQUIRIES:
MOS International plc Tel: 01274 531 862
Philip Wood, Chairman

Bankside Consultants Tel: 0207 444 4140
Michael Padley/Susan Scott

(Sorry did not want to post whole RNS, but could not get the weblink right)

Interesting - seems very favourable terms for the fund providers, leading to a possible dilution by about 8% * 125% (100/80 = discount inverted) = 10%. Further conversion appears to equate 20% discount of future price wiith 20% premium on current price - suggest s future price is anticipated to be around 150% of current price (120% / 80% = 150%). Not sure what the stand by equity distriibution fund means. Wish I had a share of all that stock being scatterd about!

Late at night so not too focused on the precise arithmetic, however, in broad terms raising cash to fund expansion is generally a very positive move and we shoudl welcome it I believe.

What does Owl think?

sd

sd-it's late for my simple brain can you explain? if MOI want to raise funds why not go to it's shareholders or do we miss out again!!

mp - you're up too late for me to explain (or is it me who's up to late to understand) but here goes:-

The cost of a rights issues with all the legally checked documents and circulation thereof, coupled with the probability that only say 50% or may be less will be taken up, so it needs underwriting is just too expensive, cumbersome and uncertain for such a small net yield of new funds.

So, even though existing holders are diluted, we have to assume that the value of the company has increased by its new ability to fund expansion into fulfilling new orders - so the dilution is counteracted by increase in perceived value per share. But be prepared for some volatility whilst the news and dilution are abosorbed by the market.

I will continue to hold through all this (unless it gets completely wild!)

I'm going to sleep - good night.

sd

got it! I'm now happy with developments but I'll bet there's a consolidation on the cards next year. goodnight let's hope for more good results tomorrow.

Thanks's for your post Stockdog.
IMO it takes time to turn sales into profits - MOS/PMH kit is hugh. If they're putting this much effort into further expansion, it shows they're serious and expect more orders...the need for reserves PROBABLY means something's round the corner with an existing order - i.e. further work. Only speculation, but given Nexen's plan's and PMH involvement I guess that's where the extra 2m's going.
Assume PW & BP know what they're doing - they're not new to this.

Well, absolutely zero reaction from MMs this morning - price steady as a roc (hush, don't mention the dead to Owl) and one modest sell of 146,500 at .58p. Is this share completely below the parapet still?

sd

Spoke too soon stockdog! - here they come...
Phoned MOS & bankside - I'm definitely not selling.
400k still to buy...hopefully at 0.40p (if it gets there).
Chrissie: We missed you - profuse appologies from IC. They say they'll fix it next week or so with update.

don`t like the look of this.

Well, thank God my 20% stop-loss chucked me out a few weeks ago. Don't normally set them and was pissed off at first but now I'm glad I did. I maintained on my watchlist as MOI seem to be on the road to recovery and has much enthusiasm on these boards BUT although the sp is now very tempting to have another crack I get very nervous about companies who keep raising cash via shares/bonds at massive discounts to the current sp.
I think they owe long-term shareholders some explanations of their actions that have contributed to the fall in the sp.
I understand the potential of Moi but need to understand alot more about their financial position and orderbook before getting back in.
Thoughts anyone.

Is this a buying opportunity or should I remain cautious?
I have a good feeling long-term re:Moi BUT they seem to be raising alot of cash.
What sp will they raise their next funds at?

andys

Was pretty ambivalent about MOI a few weeks ago and even more so now. It's all very well winning these orders, but the lifeblood of a company is its cash flow and clearly MOI do not have any. I can't see any great improvement until more orders are won with reasonable margins. I do think that the recent orders have been won at low margins and this will effect both cash flow and profitability.

One to watch for me at the moment, I might miss the bottom, but I'd rather do that than pay over the odds and be locked in for yonks.

DYOR

pth

Seq - me neither. Saw same thing with RPT - dipped in at 69p (with s/l 45p), initial bounce looked good, then fell to 55p - all L2 MM's well down, at which point triggered my 'mental' s/l to cut losses quickly on such a risky play as the up trend should have continued. sp for RPT today is 78p (all this in 1 week!) but I have no regrets on RPT...I guess we either believe the MOS story or we don't. I still do until there's evidence to the contrary i.e. worse than expected annual results in August. It's going to be a bit rocky till then IMO, and we may well retest last years' lows in next couple of months due to price action.

Tend to agree with you Pete, I was enthusiastic but set a stop loss for once as it really isn't my area of knowledge. Annoying to get thrown out of something you believe in and take a loss. I still think MOI appear to be doing the right things for a good future but I am concerned at the constant cash raising going on and need more information before I invest again.
Need a statement from MOI with their intentions/projections looking forward including needs to raise more cash and at what discounts?

Taking yesterday's SP of 0.59 and applying the rules of the new issue, counting the shares issued for the 45,000 fee as nil paid, I get to a weighted average SP of 0.586p, but someone may care to check my arithmetic.

If the additional shares are issued whilst the SP is below yesterday's .59p, then the dilution effect is greater and they probably end up 1-2% below the VWAP used to calculate issue price. However, that is really very little dilution, compared to the evident benefits that this working capital will give them to fulfil new orders which is after all the life blood of the business.

The pricing rules are a quite clever little game to set a fair price post announcement. If the company can keep its SP up, the placing price will also be reasonable - the bulk 1.5m being at 95% of 5 day VWAP and the remainder .5m no lower than 80% of yesterday's price (mid I assume) (or 120% of 5 day VWAP if less).

I would buy more stock if I had the funds (easy to say, I know, but true)

DYOR

sd