Web Site : http://www.kentz.com

Kentz Engineers & Constructors have been in the construction business for almost 90 years, operating in over 20 countries world-wide with a turnover of approximately $600 million. Kentz provide a full range of technical and project management skills, from design through procurement, construction, commissioning and start-up to assist world-wide clients in developing and upgrading facilities.

Kentz is a successful engineering contractor, which serves clients
primarily in the oil and gas, petrochemical and mining and metals sectors.
The Company's principal activities are the provision of mechanical,
electrical, controls and instrumentation engineering, construction and
management services

Kentz today is a truely international company with approximately 7,000 staff in Europe, Africa, the Middle East and Asia and is represented by subsidiaries and offices in over 20 countries world-wide.

http://business.scotsman.com/business/One-to-watch-Kentz.3862842.jp

Published Date: 11 March 2008

Source: The Scotsman
Location: Scotland

Scotsman says BUY

KENTZ Corporation's principal activities are the provision of mechanical, electrical, controls and instrumentation, engineering, construction and management services to oil and gas, petrochemical, power, process, water and environmental, communications and commercial and infrastructure sectors.

The engineering group has an international trading profile, but its biggest single area is in the Middle East, where it is focused on Kuwait, Saudi Arabia, Qatar and the United Arab Emirates; 60 per cent of last year's revenue arose from the Middle East.

Kentz came to the AIM in February at 115p, raising 66.7 million. It is organised into three divisions engineering, construction and technical support services and in each area offers a comprehensive project management approach, from design to completion of construction.

The group's client list includes Shell, Exxon Mobil and Anglo Coal. Activity in its core trading sectors is buoyant, with the order book doubling in recent years to a little under $600m (299m). In addition to growing organically, Kentz is also acquisitive and, well-financed from the IPO, is in a strong position to identify and secure strategic complementary businesses.

In the six months to June 2007, revenue grew by more than 60 per cent and pre-tax profits by 70 per cent. The prospects going forward look good; the company has just won a contract renewal to provide support services to Fluor in Kuwait.

Standing on a prospective p/e of around 11 and likely to pay a maiden dividend over the next 12 months, Kentz's shares look good value.

PP I am worried about your state of mind. Over on a rival site you make over 200 posts a day, host 90 threads and regularly post on 5 different sites. You have set up duplicate threads for Chinese stocks, wiped many of your own posts (to eradicate any possiblility of criticism)and constantly change your mind. This behaviour would seem to be obsessional, manic and delusional. Not to mention the fact that you need to get a life.

pp is my hero ok. You can get lost, zscrooge.

zscrooge, I am more worried about those people who now follow and post about posters, as opposed to discussing stocks and shares and markets and sentiment.

Although it is possible to understand that the present market falls have pushed some into financial oblivion, and with that perhaps immense personal stress, which is perhaps making them turn their "anger" on to BB posters.

Sad, but true.

As it seems "zscrooge" is going to be "stalking" me with abusive posts etc... I will add them to the "Squelch" facility. I really do not want the threads to fill up with nonsense posts by zscrooge.

What that means is I will be unable to read their posts.....so don't expect any responses to anything they post in future. If you find they are still filling the boards with nonsense posts, I would suggest emailed Moneyam support and complaining.

If anyone wishes to "Squelch" this poster then click on the link below, and add their name to your "Squelch" list.

http://www.moneyam.com/InvestorsRoom/squelch.php

From the sharecrazy.com site :


Date 06-03-2008

Comment : Evolution Securities has initiated coverage on Kentz Corporation Ltd. with a buy rating and a 170 pence price target, citing valuation factors. In comment published today, Evolution noted that Kentz, a global engineering, procurement, construction and services business for the oil, gas and petrochemicals industries, has a strong focus on the growth market of the Middle East. The broker pointed out that around 60% of Kentz revenue and 80% of its current order book is focused on the Middle East, which continues to see unprecedented levels of activity, particularly in large gas projects, refining and petrochemicals. Evolution noted that Kentzs order backlog has doubled in the last two years and the company has an order book of around 580m usd, equal to around 90% of the brokers 2008 revenue forecast. Evolution added that, in its view, Kentz also has excellent prospects for new business, suggesting continued double digit EPS growth over the coming years. The broker pointed out that Kentzs current rating of 11.3 times 2008 estimated earnings is around a 30% discount to the sector average, which Evolution believes is unjustified. Evolution said that given Kentzs potential double digit EPS growth rate and visibility through its expanding order backlog, the broker believes a 10% discount to the sector average multiple of 16.6 times is more appropriate. The broker added that such a rating discount leads to its target price of 170 pence for Kentz and, therefore, its buy rating.

Moving up well.

Comment out from Momentum Investor, this taken from AFN :

Kentz Corporation - High quality new issue in oil services

130p Epic code: KENZ

(Momentum Investor) With the boom in energy prices seemingly unstoppable, conditions are clearly ripe for shares in Kentz Corporation (FT sector: Not listed), an engineering contractor focused on the oil & gas and petrochemical sectors, to become one of the top performing new issues of 2008. Kentz was introduced to AIM on 5 February by broker Evolution in a placing at 115p a share which raised 66.7m including nearly 19m new money valuing the company at 134m. In spite of the tepid market they swiftly moved to a new high of 148p as investors became aware that this is one of those picks and shovels businesses that should do extremely well in a US$100 a barrel oil price environment.

Kentz can trace its origins back to 1919 when it was a small family run Irish-based firm but it wasnt until a Malaysian investment company provided a cash injection during the turbulent early 1990s that Kentzs fortunes really took off. Fuelled by a strategy of expanding into new territories such as the Middle East, Caribbean, Malaysia, Russia and sub Saharan Africa, its turnover quickly soared from US$120m to US$370m in the ten years to 2006, which in turn drove a nine-fold jump in profit after tax from US$2.3m to US$21.4m.

Kentz provides engineering and project management skills across a projects "life cycle" from design to procurement of staff and materials, through to the construction and start-up and then staying on to oversee maintenance and shutdowns (planned or otherwise). Projects include support infrastructure for a liquified natural gas (LNG) operator, involving erecting mixed-use accommodation blocks and industrial development, including utilities for power, water, waste and telecommunications. Other projects involve technical support services for onshore energy production facilities and oil terminals. Clients include large oil firms, such as Shell, BP and ExxonMobil, as well as large contracting businesses such as Amec and Bechtel, while project sizes range from US$40m to US$150m. About half its business comes in the form of lump-sum contracts with the balance mainly on a cost plus basis.

One reason why we expect the shares to really motor quite soon is that more than half of its business comes from the Middle East where the high oil price has meant that capital expenditure on future oil & gas projects is running high. That said, its likely that energy infrastructure spending will also spike in Kentzs other key markets, as Big Oil is self-evidently flush with cash to reinvest to look for new fields. The other interesting thing is that because oil firms are finding it harder to make blockbuster discoveries of the type found in the North Sea and Saudi Arabia in the 50s and 60s, they are also having to throw more capital either through bringing a plethora of small new fields on stream or through sweating existing wells to produce more by using recovery methods such as water and gas injection.

Nevertheless, Kentz is unlikely to just sit back and wait for things to happen and indeed it is now working on opportunities to broaden its service offering and extend its geographic reach of its existing services. This will happen both through acquisitions and also joint ventures to diversify risk and gain access to its partners client base.

House broker Evolution is forecasting pretax profit to increase from 15.8m to 17.6m this year and 20.5m next, while eps is expected to rise from 10.4p to 11.5p this year and 13.25p in 09. That leaves the prospective PE standing at just 11.3, falling to 9.8 next year, which is an undeserved discount to the oil & gas services sector, given the decent earnings visibility provided by its large order backlog of nearly 300m. Buy ahead of results on 31 March.

I've been adding when I can grab a bit of spare cash. I sold wsm too early and I have a feeling in my bones this might perform in the same way---looking good so far!

hello M+! .... i assumed from your comment on SOLA that you wanted a minor contribution from me.

KENZ (cap 173m) is in a sector i like very much, though i have always favoured PFC (cap 1933m) and, of late, WG. (cap 2069m)

as is immediately apparent, KENZ is a very small fish in relation to the other two and has also still to produce its first set of figures (end March) since being listed on AIM ...... it would be a big shock if these figures were not good, though sp has performed strongly and much may already be discounted.

pays your money, takes your choice

I am liking kentz more by the day will not sell till 200p min.

this is reminding me of XKO when the doubled in value thanks to a take-over.

Been in these since Ipo and have no intention of selling till they double in price .

I like a co. I can get excited about and it's doing well so far! Hi cynic I knew you wouldn't be able to resist for long. good luck mitzy.

as i said, it's a sector i like

I truely believe EVO's 170p is a bit conservative for a price target perhaps 200p would be more appropriate..thanks moneyplus.

Results are great turnover up 50% and order book now 450mill and eps 17p and rising this is cheap @150p market cap.
cash in hand 60mill.

All ok, slightly ahead.

Good enough, perhaps not for the short term hot money, but then once they are out its worth tucking some away for the long term later at cheaper prices.

http://www.citywire.co.uk/professional/-/news/shares-news/content.aspx?ID=299752


On Page 2 :


* Evolution Securities reiterates sell Cairn Energy with a 18.55 target, has a buy and 200p target for Eatonfield, a buy and 575p target for Eros, a buy and 378p target for Invensys, a buy and 190p target for Kentz, a buy and 400p target for Plant Health care and an add and 725p target for VT Group

I do not believe this is falling...

Post from AFN :

penpont - 31 Mar'08 - 23:03 - 401 of 401

From IC today:

'Kentz targets acquisitions
Created: 31 March 2008 Written by: Martin Li
After floating on 5 February this year, Kentz's maiden results as a listed company revealed significant growth in revenue and profit. The order backlog increased almost 10 per cent to $596m (300m) by the year end and had risen further to $682m by the end of January.


Kentz is benefiting from the boom in the oil, gas and petrochemical markets, which comprise 89 per cent of the group's business. Chief executive Hugh O'Donnell sees the Middle East as a key growth area, with "queues of projects lining up" in the upstream, onshore processing, liquid natural gas and oil refining sectors. The expansion of tar sands projects in Canada, a relatively new market for the group, also offers exciting potential. Importantly, given the heady growth rates, Kentz has shown its ability to manage cost inflation, even through fixed price EPC (engineering, procurement and construction) contracts. Pre-tax profit margins rose to 6.3 per cent from an average of 4.8 per cent in the previous two years.

The 19m raised on flotation will allow the business to grow through acquisition. Mr O'Donnell confirmed that the group is looking at two key upstream targets that can service clients chasing reserves in marginal, remote and deepwater fields.

Evolution Securities forecasts 2008 EPS of 23, subject to revision following these results.

IC VIEW

Good Value. With increasing demand, tight cost controls, and plenty of contract opportunities in the pipeline, the prospects for Kentz look good, particularly if it strengthens its upstream capabilities through acquisition. Trading on a forward PE ratio of 11, the shares rate good value.

Last IC view: Good value, 124p, 6 February 2008


http://www.investorschronicle.co.uk/Companies/ByEvent/Results/default/article/20080331/520e259e-ff08-11dc-a64c-0015171400aa/Kentz-targets-acquisitions.jsp

A reversal on the day onwards to 170p if the chart is correct.