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.

All great news, and seeing as we must be at the bottom of present weakness, am going to add again!

Just ticked up again.

cheers GF.

And again. cheers GF.

,......and again

Baza

and again...

Yes really cracking on now.

cheers GF.

I've got these in my pension portfolio and can see these going up and up over the next couple of years. Some stocks you can just buy and know you've done the right thing and others you fly by the seat of your pants. I know which category these are in. I can't take advantage of the price as I'm fully invested, what a shame.

LOL

MS

The LNG story is only just beginning and there will be plenty of newsflow of the coming months and years. As long as HMY keep winning contracts, and given their leading position within the industry, there is no reason why they shouldn't, then this is definitely at least a medium term play.

Couldnt agree more Jim and for such a growth story I feel they are realatively cheap on a rolling P/e of just over 15, which for a growth stock is too cheap. They should be at least on a P/E of 20 to 22.

cheers GF.

Tradewinds...."Imports of LNG to the US climbed 29% to 625bn cbf in 2004, as compared to the previous year, according to the US energy dept's office of fossil energy. LNG accounted for 3% of the country's energy supply. The energy dept says LNG IMPORTS ARE PROJECTED TO ACCOUNT FOR 20% OF US SUPPLY BY 2020"
Huge growth story here!

Also...

"...last week Chevtex led Gorgon LNG project in Australia finally secured its first sale of product. All of this is likely to propel the oil major to make decisions on its LNG transport strategy. Some in the industry have put the company's LNG-carrier requirements at a huge 20 ships. Chevtex is the lead stakeholder in Gorgon, which is pursuing sales to the US west coast and China. Chevtex is also partner in Angola LNG and Nigeria's Brass LNG, both of which are schedualed for start up in late 2008-2009"

It looks like Qatar started the LNG story...but there are several other projects...
Gorgon (Australia)
Angola LNG (Angola)
Brass LNG (Nigeria)
Gazprom (Russia)
Tangguh (Indonesia)
Yemen LNG (Yemen)
All of these plus the ones i have probably forgot, will all require many ships, and the more different production locations that there are, and trades that are set up, the more likely a spot market will be created...and when that happens, the fleet is set to expand hugely. IMO all good news for HMY.

Well done Paul it just keeps getting better. I really believe in this one, unlike some of my other holdings. Oh well you can't win them all.

MS

Yes excelent Research Paul.

cheers GF.

One of our posters on here was recently plugging Star Energy and their plans for Natural Gas storage. Take a look at EDR - they announced their plans for LNG storage and trading in an RNS on 21 April. I'd post it here but its far too long. A most interesting read and further confirmation that LNG is going to become a major factor in the international energy scene. Not directly related to HMY, but another part of the total LNG story.

I agree its a long news release but here is one section that reflects what is going on in the market for importing and storing LNG.....

Commenting on the agreement, Egdon's Joint Managing Director, Andrew Hindle,
said 'The move into gas storage is a very exciting development for Egdon. UK
production of gas is expected to decline significantly over the next few years
and this will result in a commensurate growth of gas imports to meet demand.
Over the past 40 years, periods of high demand for gas have been met by using
peak production capacity available from the North Sea. With supplies
increasingly coming from further afield, gas storage facilities look set to
become a vital resource in the gas supply marketplace. Egdon has used its
extensive knowledge of the geology of the UK onshore to identify the potential
site at Portland to participate in this emerging growth business within the UK
oil and gas industry. It is currently anticipated that the initial working
volume will be between 10 and 20 billion cubic feet and the first cavity on the
site should become operational in 2008'.

Potentially good news for HMY

Could be a very interesting next two weeks for HMY if we get any further news on these LNG contracts.

cheers GF.

I picked up the end of a discussion on Business news at lunch time talking about the over supply of gas and that there could be a gas bubble over the next couple of years at a time when LNG is being imported. The commentator did say however tjhat if that happened - it would be easy and economic to transfer LNG across to other companies such as USA using massive tankers that were coming on stream. Good news for HMY again - did anyone else pick up the full story ?

Baza

Was this on TV then Baza?.

cheers GF.

Still below the tactical BUY price of CityWire (230p)

cheers GF.

There was much the same story in Monday's edition of the Times. Basically by the end of this decade there will be more than enough LNG coming into the UK to allay any fears of shortages. The good news is that it not only the UK looking at LNG imports - in the USA alone imports of LNG are rising fast and many other countries are looking at LNG replacing oil in power stations to reduce emissions. From HMY's point of view its all good news - ships, terminals and storage sites have to be built and all require a range of gas handling equipment.

GF - yes it was on Business Lunch presented by Adrian Childs?