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.

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

The movement on sp of this following all these cash-raising exercises is not good for existing holders and MOI certainly need a trading update NOW and not in September if people are to keep faith in the company.
What looked a good story is being spoilt by the poor performance of the share price.

I agree. Not really much good news from the company and we seem to be trying to second guess whether they are or are not making good profits on these contracts. However, some consideration must have been taken of the companies current position and FUTURE positon before the monies were made available so cannot be all bad. Issue IMO is short term positions on liabilities. Longer term needs more comment from company, comment yesterdsay was not very conclusive DYOR

This latest driop in SP changes my view considerably. Having initially thought the company knows what it is doing, I now have concerns, at leaast in their ability to communicate properly.

The terms of the bulk of the cash call 1.5m are rather insidious for a falling SP - there is a 7% coupon to pay until converted to shares. However, given the fall in SP the conversion will cost the company (by which I mean us shareheolders) dear since the price per share will be 95% of 5day VWAP - screwed either way.
EDIT 18/06/05 - sorry talking rubbish, it's the balance of the loan note 475,000 that has a 7% coupon until converted. The larger 1.5million standby equity is priced at 95% of the immediately preceeding 5 day VWAP and has cost a fee of about 7.5m shares issues as fully paid at about 0.6p.

MOI need to issue an immediate RNS setting out the various contracts on which it needs to spend this money with gross value and timescale for each (or is it to supportr PMH's new efforts?) and an indication of what the trading result for this year is likely to be. I guess this latter will come with the prelims - when are these due, anyone know.

I will try to write to the CEO and express my concerns.

sd

Here is my email to Chairman Phillip Wood. I'll let you know what reply I get.


Dear Mr Wood

I and a number of smaller shareholders with whom I am in contact have concerns over the recent raising of 2million new funds.

The use to which these funds are to be put "to provide additional working capital for
the Company" is extremely vague and, given the strategic recovery of the company that is still in progress, is less than adequate to give confidence to the market.

The resulting sharp drop in the share price exacerbates the loss of value to shareholders, since the bulk of the new funds are priced according to a discount on 5 day VWAP. This mechanism will further dilute shareholder value whilst the share price remains below the 0.59p prior to announcing the fund-raising.

We are all supportive of the immense achievement under your guidance to turn the company's fortunes round, but we would equally welcome a more detailed and supportive announcement from you as to exactly what projects are in hand with their gross values for which the company need this additional working capital. Otherwise the market will continue to assume that it was raised to plug a hole in expectations and treat the share price accordingly.

Many thanks for your kind attention.

Yours sincerely,

very well put-hope you get a detailed and upbeat reply to justify our investment thanks sd.

What is the general feeling now the dust is settleing ??

Dig in for the long haul.....or cut your loses ?

Like many, I brought in at 1.3p with 600m shares in issue, its now 1100m and rising every other month, personally i am so far down now, i might as well see it to the bitter end, others views would be nice ?

SD, nice e-mail, I will be interested to see the response.
As you know my stop-loss kicked me out at 0.65p and I had not invested a lot anyway so no big deal to me BUT I was annoyed. At these prices, if the general feeling is still good I could get back in and have more shares than when I started, strange world at times, however I am sceptical now of the constant cash rasing at lower and lower prices.

Hi thought this may be of interest to you guys. Good news on the way ?? Article in the Daily Express today.

Abbot Group firmed 15p to 244p but fellow oil services group MOS International drifted 0.09p lower to 0.43p following a finance deal
earlier this week to fund its expansion.
Management is planning to reassure investors that business is
booming with roadshow presentations.A number of big orders are in the
pipeline and the first,which is in Mexico,could be announced in the next
few days.
Good news soon, hope so.

wygyr.

Intriguing - wygyr, thanks. Hope there's a roadshow near me I can get too - quite fancy seeing the white's of PW's eyes.

sd

SD. Sorry not to be there for Friday's action - In Valencia (one of Spain's biggest ports and where MOS should be - BOP, rig lifting gear everywhere!!!) - for long w/end break. The Owl will hoot again. This share is NOT for the faint hearted - but it will be back above 0.60p within 8 months max. Last week was complete over-reaction - and very poorly timed FOR A REASON. The reason? we'll know soon enough...I haven't sold nor am I planning to MOS is winning orders/expanding. I have a buy order ready at 0.40p if it gets that low. There are of course no guarantees (particularly with AIM), but Do (and believe!) your own research.
(ps why would MOS have planned a Roadshow -(i.e presentation of what the company is doing not a sales event- if more bad news is coming?!! - remember they have to announce delays/bad news etc that will affect share price - it's an AIM rule...so we can assume it's business as usual, and the new money is what they say it's for - namely expansion & reserves for PMH).

Dont really think it will take 8 months if they release the right news......