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.

I agree GF.

MS

Total have also just signed a big LNG deal with Qatar to take 7million tonnes per year, destined for France, Britain and the US. As yet they are undecided as to how to deliver the cargoes, hopefully they will end up ordering a load of LNG ships that use HMYs reliqufaction plants.

A golden opportunity here to get in before the action really starts. The shares trade on a miserly rolling P/E of just 15, they should be 20 plus for a growth stock. Youve been warned.

cheers GF.

paulgrip

there is only one way to deliver over those distances and that's by sea. the economic case over a 25 year project is overwhelmingly in favour of onboard reliquifaction on slow speed diesel ships. Total's uncertainty probably hinges around whether to build and run the ships for their account or whether to charter in the required expertise. Either way is OK for HMY.

just read about the exhibition in bilbao later this month. I wonder whether HMY will use the opportunity to announce any big deals ?

news and contracts should be announced soon
agreed very cheap at current price
will go a lot higher 3.00 first target

regards HUSTLER

Probablty will Jim, Im thinking of getting into Star again, was it you that bought them a few days back?.

Just noticed HMY as ticked up. Seems to be a lot of interest around other boards but investors dithering. Probably the wider market putting them off. Best to get in now though when its cheap and it is cheap.

cheers GF.

GF

Bought STAR a few days ago and topped up today - quiet at the moment but its got to benefit soon from all this news on LNG. I reckon people think that STAR is an oil company when in fact it is a storage company, primarily for gas. Any oil it can get out of depleted fields at the current high price is a bonus.

jimwren

a comparison between STAR and HMY...........interesting

Well that just goes to show that Star is way underbought and that Hamworthy is still derd cheap. I can see HMY at twice its value come early 2006.

Cheers GF.

BUY Hamworthy as you can see above, its way too cheap.

cheers GF

accord

thanks for the pretty picture , but i don't see your point. I am still in HMY, have been for some months and have topped up twice. I still think there is plenty to go as HMY comes out with news of new wins. As for STAR I can only say again that as a new quoted company I am sure that a lot of people haven't made the link between them and LNG imports. When they do I think we'll see some action. In the meantime I am in at a low price and will wait. STAR's prelims are in mid April (19th ?).

jimwren

It was to show a comparison between the two companies. Over the 12 months HMY have outperformed STAR. I invested in HMY for its huge potential and to get more than 5% gross interest than the banks offer. So far I am 37% up since when i bought. I couldnt say that if i invested in STAR.

However, I do agree with you that STAR also has huge potential and that not a lot of people know about it, yet, and, as you so rightly say, maybe due to it being classed as an oil stock.

Im sure that when news flow increases in STAR then this will ramp up like HMY has over the past 6 weeks or so.

accord

as i said i have no problem with HMY and have made some good gains, i am also holding them at least for 2005 or until the LNG newsflow becomes old hat. I will be waiting with interest for the interims from STAR.

Moneytoday reports that South Korea's three leading shipyards have won orders for 44 LNG carriers worth more than $10bn from Qatar...
This would be nice for HMY!!

Things are looking mighty interesting. Supridsed more people havent caught onto the LNG growth story yet.

cheers GF.

And if HMY win the orders for the gas reliquification systems for these tankers then the shares will take off again.
Star sounds interesting though - let's keep it in sight as it could be an important part of the total story.

Pondy

Pona Life

Yes I agree, Star is definitely part of the total story. One to keep on the radar screen along with HMY which I think is going to be worth alot more money in 12/18 months time. Double at least.

LOL

MS

Looking forward to another good week with HMY Mickey.

cheers GF.

From Tradewinds on friday "Options for two monster 210,000cbm LNG carriers at Daewoo appear to have been firmed up. Qatar's LNG producers are understood to have confirmed their first two options on Large LNG carrier newbuidings...The vessels are said to be due for delivery in 2008. They are said to be sisterships to the four $218.75m ships that the yard is building for Pronav ship managment under their lnon-term time-charters with Qatar"

If i am not mistaken the pronav ships use HMY reliquefaction pumps...so there could be good news on the way. When HMY won the first 8 orders, they did also win options for 12 more...this could be the start of them?!?! Lets hope the company makes an announcement soomtime soon.