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.

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.

And another:

LNG & LPG
Cheniere Energy seeks suppliers for North American Gateway plan
Company News
Imports increase ahead of future market need, writes Tony Gray- Thursday September 08 2005

Cheniere Energy is seeking to purchase up to 200 cargoes of liquefied natural gas a year under its so-called North American LNG Gateway Programme.

The Houston company is inviting proposals from LNG suppliers for the years 20082010.

The programme will accommodate both ex-ship and free on board basis ship-by-ship sales, as well as term transactions for a period of up to three years.

Cheniere said its North American LNG Gateway will provide global suppliers with a direct platform to nominate cargoes into the groups LNG import terminals starting with the Sabine Pass facility, which is currently under construction in Louisiana.

The programme will be administered by the recently formed Cheniere LNG Trading & Marketing, which will serve as purchaser of the LNG and as marketer of the natural gas to a pool of North American buyers.

The group believes that over the next decade LNG will represent 20%-25% of US natural gas supply.

The Sabine Pass LNG terminal, which is being constructed in Cameron Parish, along the Sabine-Neches Ship Channel, is set to become North Americas largest import terminal.

It will be capable of receiving vessels of up to 250,000 cu m and is permitted for 2.6 bn cu ft per day of sendout capacity in its first phase.

However, Cheniere has filed with the US Federal Energy Regulatory Commission to expand the facilitys sendout capacity to 4bn cu ft a day.

The projects capacity holders are French energy giant Total, with 1bn cu ft a day, and Chevron, with 700m cu ft a day, for 20 years.

Chevron has an option to increase its capacity to 1bn cu ft a day at the beginning of December.

Construction of Sabine Pass commenced in March.

ENDS

Just examples of the steady stream of LNG news. A lot of longterm potential for Hamworthy.

Cheers, Madison

Well, more good news today. This gets better and better:

Hamworthy says wins 25 mln stg LNG contract from Norway's Gasnor
AFX

LONDON (AFX) - Hamworthy PLC said it has been awarded a 25 mln stg LNG liquefaction contract from Norwegian natural gas company Gasnor.

The company, which designs and manufacture marine and offshore fluid handling systems, said the contract is for an unmanned land-based liquid natural gas processing plant at Kollsnes in the western coastal area of Norway.

newsdesk@afxnews.com

Cheers, Madison

What is particularly interesting about this project is that it is a development of land-based liquefication plants. (Hamworthy previously built a much smaller one for Kollsnes).

The importance of this is that the future of LNG and Hamworthy has often been discussed here in shipping terms. But there are many land based opportunities - for example the proposed pipeline between Iran and India.

"Iran has to finalise gas field development plans and award contracts for building facilities for liquefying the gas by 2006, an Indian Petroleum ministry official said. Iran will be liable to pay $50m to India in case of delays in awarding these contracts.

India included this penalty clause in the $22bn deal it signed with Iran in June for the import of 5m tonnes of LNG for 25 years, so that the gas reaches its shores as per the committed schedule of 2009-2010.

Cheers, Madison

excellent news, im glad i stuck with them