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.

GF

I had forgotten about Star Energy (STAR) - I knew they had bought storage in Lincolnshire but didn't realise they were a quoted company. Prelims for 2004 are released 18 April - could be interesting. The UK suffers from a big lack of storage sites for imports by ship.

see also comment from daily telegraph business:

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2004/12/26/ccmm26.xml&menuId=242&sSheet=/money/2004/12/26/ixfrontmarkets.html

JM

Not the most dynamic share on the market (STAR). Last year it moved side ways seven months and then took nearly 4 months to go up by 10p. Maybe when it wakes up but not at the moment.

MS

Agree with you on that Mickey but when Star goes I bet it goes like a bullet. Been in and out because of the senario you desribe above.

Anyway HMY as got to be one of the hottest stocks around at the moment. Tipped in the Feb Growth Company Investment letter aswell, just got my free copy an hour ago the snows really delayed the post today, its 2 ft high here in Huddersfield and still going, gawd. They say HMY is very cheap for a growth stock and massive growth industry. Havent read the full article yet though.

cheers GF.

The Star article...........

Star Energy

Take a look at Star Energy Group (187.5p). The oil and gas producer raised 80m when it floated on Aim in May. That generated strong interest given Star's focus on redeveloping mature onshore oil and gas fields as gas storage sites.

As the UK moves to become a net importer of gas, security of supply is a growing concern and companies such as Star are in pole position to benefit from price fluctuations. The news flow is likely to increase next year with Star's main site, Humbly Grove, due to start operating in October. Acquisitions are also on the agenda.

The shares are worth tucking away for the long-term.
cheers GF.

GF...what is the Growth Company investment Letter?

Hi Paul,

produced 10 times per year by this tip sheet company and they have ongoing tips everyday, all you do is click on the URL address after 7pm everynight and you will see a new list of tips. Its derd cheap aswell for the first year, and the mag is superb. You can get a free trial copy here.



http://books.global-investor.com/pages/offers.htm?ginPtrCode=00000

The web site is ..................................


http://www.growthcompany.co.uk


Cheers GF.

I think this one is on the verge of taking off, and I dont usually use those type of statements, Im more of a conservative person but this one as massive potential.

cheers GF.

Looking for a price rise here today.

cheers GF.

GF...thanks very much for the info.

No problem Paul.

Come on where are the HMY buyers, its going derd cheap at the moment, wont be though in a weeks time.

cheers GF.

Got to be one of the hotest stocks around and theres no action. Barmy.

cheers GF.

Just out from tradewinds... "US oil major Conocophilips has been holding meetings with LNG players this week in a bid to assess their capabilities on LNG shipping. The company is attempting to get a clear picture of how best it can source the 15 to 17 LNG carriers it is likely to require"..."In line with the large-size LNG carriers already contracted through QSAT, the ships for Conocophilips will be powered by slow-speed deisel systems conmbined with onboard reliquefecation plants"..."in addition to these vessels, owners say the oil major could require a further four to six conventional sized LNG carriers from 2009 onwards that would be developed for use in its two train Brass LNG project in Nigeria" And also

"Oil major Shell is expected to break new ground in the next few days by signing a massive LNG deal worth an estimated $8bn with gas-growth driven Qatar that would require a new fleet of LNG carriers to lift the planned exports. The number and size of the LNG carriers required by the new deal will depend on where the product is sold. Shipping market players were visibly excited by the news of shells impending deal this week"

Possible great news for HMY!!!!!

GF/MS

I agree with you about STAR being a quiet stock at the moment but the time frame for big LNG imports starting into the UK is short (2 yrs) and I think that this year you are going to hear a lot about it. Good news for HMY but I think sooner , rather than later, what STAR does is going to be recognised. They buy up storage areas which have been attached to declining oil / gas fields and refurbish them, primarily for LNG. Maybe after the prelims we'll see movement but I am going to put 5K in now. I don't mind waiting a bit for action.

Too right. This is going to be fantastic. HMY are already established and have equipment already installed. Got to be good.

MS

Buyers coming in now.

cheers GF.

paulgrip

if conoco are definitely specifying slow speed diesels with onboard reliquifaction then HMY must be rubbing their hands - my understanding is that their technology regarding on board plant leads the way. Great news.

jimwren - exactly. very good news.

Bloomberg

Shell to build $6 billion LNG plant in Qatar to meet world demand. Got to be good for HMY.

MS

Hamworthy has had my attention for a while now was waiting for a break above the previous high - kind of missed that. Oh well, but I'm still interested.

Anyway, saw this on the BBC ...

"Shell signs $7bn gas supply deal with Qatar
By Thomas Cat in Doha
Published: February 27 2005 12:20 | Last updated: February 27 2005 15:17

shell graphicRoyal Dutch/Shell, the Anglo-Dutch oil giant, on Sunday signed a deal with state-owned Qatargas to build a new liquefied natural gas project worth up to $7bn that will send 7.5m tonnes a year to the fast-growing markets of Europe and North America.

The project, called Qatargas-4, represents a significant boost to Shell as it tries to convince sceptical investors that it can secure new energy reserves to replace the oil and gas it has pumped. Shell was forced to slash its proved reserves five times last year, prompting a wide-ranging shakeup of the company.

Linda Cook, head of gas and power at Shell, said the company should be able to start booking the Qatar gas deposits by 2006 or 2007. She expected 2bn barrels of oil equivalent to be produced over the life of the project.
"

So the shell deal discussed previously on this BB has been signed. A major investment in LNG but can someone provide some detail on how Hamworthy will benefit and what kind of time-scales we are talking?

Thanks in advance.

Stuart

HMY will benefit as the LNG tanker fleet is set to expand rapidly due to all the future LNG that will need transporting. At the end of 2004 the whole tanker fleet stood at 3,775 (ranging from VLCC's "very large crude carriers" which carry over 2 million barrels of oil, to much much smaller ones) and the LNG fleet stood at 177 ships only. If the oil majors expect LNG to one day take over from crude, then the expansion of the fleet will be huge and rapid!!! and with HMY making the on-board reliquefaction plants for the new super sized slow speed deisel ships, their growth could be huge as well!!!