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.

any reason for the jump today?

It might be to do with the results coming out at the end of May.

In theory this should have happened after the contract news, but the market was against it. Is there a touch of delayed reaction? Whatever, it's nice to see it up today.

Cheers, Madison

Too true. Excellent web site and top management.

MS

Great to end the week with a nice rise...the other contracts should be declared pretty soon, so we should get some more good news hopefully next week, which will set us up well for some great results on the 31st.

Looks like a tree shake this morning. Mms not getting much though. Roll on the results.

cheers GF.

Tree shake GF? We're only down a penny. Its just drawing breath after Friday. Plenty left in the tank here I think.

Agreed PL, buys greater than sells but price lower. Looks like MMs attempts have failed.

cheers GF.

And right at the death, up we go. Rather a penny up than a penny down. Bet we'll have a good day tomorrow.

Hoping so PL.

cheers GF.

Nice to see this one moving up.

cheers GF.

Anymore news anyone?.

cheers GF.

Just waiting for results next week.

Same here.

cheers GF.

News from tradewinds paper this morning. "Qatar reveals tender winners" the article is too big for me to copy out and I cant seem to get into the website this morning so below is a brief rundown

"Qatar's LNG producers have named the winners of its latest massive tender. A consortium of key japanese owners and Teekay shipping have scooped 12 giant LNG carrier newbuildings worth a theoretical $2.76 billion following the latest tender from Qatar's LNG producers..."

Well informed sources say the grouping of Mitsui OSK lines, K line, NYK, lino Kaiun plus trader Mitsui has won long-term contracts to back eight of the Q-flex, or 215,000 cbm, LNG carrier newbuildings.

Teekay has been awarded four similar ships.

Leading LNG carrier builder daewoo shipbuilding looks set to build five of the Qatar ships, Samsung four and Hyundai three. There are options to upgrade any of the vessels to the larger Q-max size of around 250,000 cbm.

Expected delivery 2008

Qsat is due to launch its next tender later this year for eight large LNG ships.

Three more tenders for a further 26 LNG carriers are to follow."

I think this sets up some great news for HMY with their results next week.

I hope so Paul. Would there be a chance of HMY being a nominated supplier or does it not work that way.

MS

I have just re-read what i posted...its meant to be a further 36 LNG carriers not 26.
Mickey...The first rung on the ladder is to at least get the owners nominated who are going to buy and run the ships, and get the charter details agreed...once that is done (which it has just been) Qatar matches the owners with one of the yards they have reserved Slots at, and the theoretical order becomes a firm order. It is at this point that all the secondary contractors ie HMY recieve their orders. There is a very strong possibilty that HMY will have won the contracts for the re-liquefaction plants on these ships and I would expect some news on this shortly.

Thanks for that Paul. It keeps me up to speed.

MS

Paul
Does Hamworthy have a lot of competition for the work or are there just a small number of players in this field and all can expect to gain some orders?
Leslie

There are very few players in this market, and IMO they are one of, if not the leader! This is from their website

"With more than 60 years of experience in design and manufacturing of refrigeration systems we are one of the pioneers in building LPG carriers and subsequently LNG carriers. Our experience is second to none for LNG applications and we often have had to development new technologies to meet new global market requirements, an example being our state-of-the-art Moss inert gas generators and nitrogen generation systems
Hamworthy plc holds a worldwide license for the sale and fabrication of the Moss RS LNG Reliquefaction system."