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.

The news flow on LNG is really excellent. Anyone in any doubt as to the momentum of developments can visit http://www.lngexpress.com/

Here you'll find a steady stream of evidence (almost daily) of the future shipping needs, expectations and plans for LNG. Oil price rises, oil companies moving to LNG etc...should all be beneficial to HMY.

Cheers, Madison

http://www.lngexpress.com/

Tipped in IC today. Sent the shares up like a rocket first thing, but the rise couldn't be sustained and it's now fallen back to +4.5.
Like I said, these still have a long way to run.
Madison, thanks for the link. LNG is a boom sector - what we need to keep this going is some more newsflow from HMY themselves.

I agree that the newsflow on LNG is excellent - my point is that I think the market already expects HMY to do very well out of the big projects and I find it difficult to see what piece of fresh news is going to really drive the SP. Could be wrong of course !

Good rise today - is ther news in the offing ?? - oor just being carried along on the oil rise?

Baza

I read on ADFVN that there has been a broker note out with a target of 2.80. Maybe that and the Investors Chronicle tip last week have helped? It is good to see it moving again after not showing much signs of life since March.

This has been going vertical for a week now. I don't know what's behind it, I'm just enjoying the ride!

28% rise in a month is not bad at all i think.

I was looking to off load these when I moved house a month ago and glad i didnt. I'll carry on watching for any downturn due to profit taking but until then, im enjoying the ride like everyone else.

I offloaded when it went below the 200 day moving average, below the previous support level and there wasn't much news flow. Oops!

Thought about getting back in a couple of days ago because I do see the long term prospects however the IC tip alone seems to have prompted this verticle movement.

A good week for all who held on!

From the Telegraph this weekend:

Small cap values

Hamworthy

Hamworthy's shares, traded on Aim, have raced up 27pc in the last month after the company gave a very upbeat trading statement. The company provides systems to ship owners that allow them to transport liquid natural gas. This is a tricky business, which involves lowering the temperature of the gas to -160c, converting it to liquid.

Liquid natural gas is big business and the company's order book has grown from 121m at the end of March to 145m at the end of July. The shares are not cheap, rated on 16 times forward earnings, with a yield of 2.2pc. But the growth prospects are excellent. The shares, at 261p, are a buy.

Smaller natural resources, a richer seam to mine | James Fisher | Hamworthy | Home Entertainment

From The Sunday Telegraph this weekend:

Hamworthy

Take a look at Hamworthy (261p). The marine engineering group has developed a portfolio of customised products and solutions for companies operating in the crude oil and liquified natural gas (LNG) markets. Demand for Hamworthy's products, which include cargo systems for LNG and ethylene, has been driven by the expansion in world trade and energy transportation as well as increasing safety regulations.

Hamworthy's order book is up by 75 per cent on last year and its markets should remain strong as LNG demand is set to keep growing. Analysts at Altium Securities expect interim results in November to be strong and have set a price target of 280p. The shares are a speculative buy.

Has the uptrend finished here?

I think so Andy - for the time being at any rate. I have off-loaded my shares and will look to buy back later. There again, could be very, very wrong.

Still ticking up nicely - up another 4-5% this morning in early trading

yup


moving upwards again i reckon 3 soon!!!

Heres hoping so....sure is getting close now

Building to the interims in November?

One thing I like with Hamworthy, which is not much discussed on this board, is that you get a dividend (about 2.5%). OK it's not in the Lloyds/United Utilities category, but still very useful if you're tucking these away for the long term.

Many of the threads here are concerned with companies paying no divi. (Another good exception being FSJ)

Cheers, Madison

Any idea why the two big sells (211,800 and 187,180) just before lunch today followed by a raft of smaller sells? Some bad news about to break?

Tumshie, could it just be some very understandable profit taking? The two big sells may have frightened a few into thinking the price might plummet and wishing to exit with a good profit.

I must admit I was tempted myself - it seems quite likely we'll have a correction after such a good run. But then from an investment point of view why worry about a dip for a few weeks/months (especially when sweetened with a divi) if you believe the longterm future is looking solid. For example, American demand for LNG has increased very quickly and a consortium of five Japanese companies has secured a 25 year contract to export 5.2m tonnes/year from Qatar to N. America. The LNG story may have only just started.

I've no idea whether we'll have a correction or further to go up to the interims in November. But as a long term investment I think it's as safe as any of my small caps if not safer.

paulgrip - if you are around - would be good to hear from you with your excellent shipping knowledge!

Cheers, Madison

From Lloyd's List:

LNG & LPG
Qatar Gas Transport confirms 90 LNG carrier order bonanza
Company News
Thursday September 08 2005

Qatar Gas Transport Co has confirmed it may require a fleet of about 90 liquefied natural gas carriers over the next five years, writes Tony Gray.

The company, also known as Nakilat, expects Qatar to have the worlds largest fleet of LNG carriers by 2010.

Qatar Gas Transport has usually spoken of needing more than 70 LNG carriers although South Korean yard sources have previously indicated they thought the order bonanza was likely to rise to 90 vessels.

Now this total has been confirmed by the companys managing director Robert Curt.

Of the 90 ships, some 48 vessels are already either in service (20) or on order (28).

This will be the largest fleet of LNG carriers servicing one natural gas producing country, Mr Curt said.