After a year of stumbling around and ranging HAMP has finally broke out (see a chart)...and looks set for a run up this year...

Brokers buy notes (see yahoo), good contact wins...all looking positive on charts...cant see it failing really..

any thoughts?

Well done gibby..

Plenty of upside now as there is BREAKOUT on the CHART, plus a very strong order book / level 2 on the bid side at the moment



edit - I will add another 2 month chart as the - money am - candlestick is not shhowing the starting point high on the day of Profit warning last August, should be 28p high of the day and from that point ther is a GAP to 50p

2 month candlestick

Holding strong, close to the best of the day

huge volume 12M at LSE

Broker News & Views

Hampson Industries raised to buy from hold at Investec, target price stays 40p.

Liburum Capital has a note out today saying Buy:

The shares are trading on a striking CY11 P/E of 4.2x and EV/EBIT of 5.3x.
Our 35p price target implies 75% upside."

Director buying today
Christopher Vincent Geoghegan

shares acquired 181,302
@ Price per share 27.25 pence

Date and place of transaction
16 September 2010

Hampson inks 33.9 million tooling contract with Boeing

Tresa Sherin Morera, 12:58, Thursday 16 September 2010

BANGALORE (Reuters) -British aero engineer Hampson Industries Plc said it received its largest ever tooling contract, which four analysts believed was from Boeing Co (NYSE: BA - news) , the world's second-largest commercial plane-maker.

News of the $53 million (33.9 million pound) contract, which comes after months of delays in converting Hampson's quote pipeline into firm orders, sent the company's shares up as much as 59 percent to 32.25 pence in morning trade on the London Stock Exchange (LSE: LSE.L - news) .

"It's a massive vote of confidence from Boeing and I suspect it marks a bit of an inflection point for the company," analyst Ben Bourne of Liberum Capital told Reuters.

Hampson's tooling business has been hurt by delays at a number of aircraft programmes, such as Bombardier Inc's Lear 85 and Boeing's 787, leading the company to issue a profit warning last month.

"An order of this size has to be one of the orders they (Hampson) were desperate to get in order to stop the rot in tooling," said Graham Webster of Arden Partners (LSE: ARDN.L - news) .

Hampson shares have lost nearly two-thirds of their value since the company issued the profit warning in August, underperforming the FTSE All Share Aerospace & Defence Index , which has risen more than 6 percent in the same period.

Hampson, which competes with BAE Systems (LSE: BA.L - news) , Cobham (LSE: COB.L - news) and Meggitt (LSE: MGGT.L - news) , among others, expects to meet analysts' current consensus estimates for full-year pretax profit of 13.6 million pounds, said Howard Kimberley, the company's finance director.

Hampson, with a market value of about 55 million pounds ($85.96 million), expects the contract value to be realised over a year, and said it did not require significant capital investment.

"They are a bit strapped for cash at the moment," Arden's Webster said.

Hampson, whose net debt at end-July stood at 99 million pounds, also said it was conducting a full review of its operations, which may result in the sale of certain assets.

"Whether or not it (the latest contract) is enough to make absolutely certain that they don't have a covenant problem is another thing. I'd like to see a few more orders to make absolutely certain that they don't have that problem," Webster said.

West Midlands-based Hampson's shares were up 53 percent at 31 pence at 12:49 p.m. British time.

Further move up this morning, as another director bought shares yesterday

Peter Barlow, Non Executive Director, bought 28,775 shares in the company on the 16th September 2010 at a price of 29.16p. The Director now holds 163,765 shares.

Cash in the lot in two trades @ 35.50p, it looks like the high has been reached short term and now profit taking is taking place

Gap down this am.

Going well in 2011.

sold my holding a few weeks ago, in the hope of being able to get back in lower down, but they're a stubborn bugger, and every time i look, they're at the same price i sold at - 36.5p.
any of you clever chartist types out there agree that a fall back to c.32p is likely ?

Now that the dispute is over the shares should performe with the trading of the business .........


Hampson settles dispute with Erlson

International aerospace group Hampson Industries has reached a settlement in its dispute with Erlson Precision Holdings.

The dispute concerned the sale of Erlson Precision Components Ltd - formerly Hampson Precision Automotive Ltd - to Erlson. Judgment was originally awarded in favour of Erlson in April, requiring rescission of the sale and purchase agreement and the transfer of HPAL back to Hampson.

Hampson applied for permission to appeal the judgment.

However, both parties concluded that it was in their and HPAL's best interests to agree that HPAL should be retained by Erlson.

Hampson has agreed to pay 1.5m to Erlson and to make a contribution to Erlson for the costs it incurred in the litigation.

This will be accounted for under discontinued operations in the year ended 31 March 2011. Chairman Chris Geoghegan said: "While we were disappointed with the original ruling, the board is pleased to have come to a final agreement with Erlson which enables us to put this issue behind us." Hampson said trading continues to be in line with management expectations for the current financial year.

Trading continues to be in line with management expectations for the current financial year. The Group will announce its preliminary results for the year ended 31 March 2011 on Thursday 30 June 2011.

Rising for the last couple days, some good news for Boeing - adds to future work, including some for Hampson..........


http://online.wsj.com/article/SB10001424052702304432304576369183889074472.html

NEW DELHIThe Indian government approved a plan to buy 10 C-17 Globemaster III airlifters from Boeing Co. for $4.1 billion in the South Asian nation's largest military transaction with the U.S.

India Confirms $4.1 Billion Boeing Order

Stock to Watch: Hampson Industries -- Tue, 07/06/2011 | Edmond Jackson

After I described how Harvey Nash Group (HVN) is a top-performing cyclical share because it is an industry leader (see: Stock to Watch: Harvey Nash Group), what of Hampson Industries (HAMP) currently?

I nominated it as a share for 2011 at about 30p, along a similar rationale of market leadership: Hampson being the world's largest maker of aerospace components and assemblies. The FTSE SmallCap shares have been in a prolonged slide since the 2008 crisis, with an industry downturn prompting restructuring and a new chief executive taking effect from last September.

There is scope for significant long-term recovery: in 2007 the shares traded over 200p, enjoying a price-earnings multiple over 20 times; by comparison if forecasts are met for Hampson's year to end-March 2012 then the P/E is currently just five times.

The share price initially rose near 40p this last February, but slipped in March when markets took a dive; there was also a minor litigation issue awarded against Hampson; such that the price had drifted as low as 23p by last Friday 3 June; but notably it jumped to 28p that afternoon and is around 27p now. Perhaps this marks a support point.

Patience is needed, as with most recovery plays, however I believe the situation has become more interesting to watch now the chief executive should be settled in.

A 21 April trading update cited improved trading in the final quarter (to end-March) "with a number of key business initiatives aimed at increasing operational efficiency showing encouraging results." The group is progressing its largest ($53 million; 32.4 million) tooling contract, a chance to prove its technological capability across four facilities, and consequently revenue/profit are slightly ahead of expectations.

With any tendency for lumpy orders you want to see wider evidence of demand improving. There was a hint of it from Senior's (SNR) chief executive after this aerospace-related group reported prelims last February: he cited Boeing (BA) as likely to raise its 737 jet build rate from 31 to 38 a month, by 2013, hence Senior expects its order book to rise from the second half of this year.

Global economy on the mend?

The macro context looks as if the global economy is slowly recovering, albeit with soft patches appearing. OPEC, especially Saudi Arabia, has just signalled it is unhappy with oil prices over $100 a barrel and wants them lower by raising production, otherwise this will limit economic recovery hence long-term demand. This should help confidence in the aerospace industry.

Hampson's 16 February interim management statement said that "despite certain current programme delays, the board believes that numerous large tooling opportunities continue to exist..." and with regard to group restructuring "the board expects that the identified initiatives that are currently being implemented will lead to steadily improving performance in 2011/12".

Company REFS shows recent brokers' expectations for pre-tax profit of 10.8 million in the financial year to end-March 2011, equivalent to earnings per share of about 3p, with possibly 16 million to 19 million next year and EPS of 4p to 5p. Since debt reduction a current priority, there was no interim dividend declared last November and brokers do not anticipate payments resuming yet.

Net debt reduced by over 5 million from end-January to end-March as a result of cash generation, but was still 93.7 million relative to net assets overly dominated by goodwill and intangibles. The last available balance sheet at end-September 2010 showed nearly 270 million goodwill and over 21 million intangibles - ie 114% of 255 million net assets.

So although the per share net asset value worked out at 102p the share price looks to be anticipating writedowns - for example in relation to "divestment of non-core assets", the directors say they are progressing discussions towards. Such disposals and their financial effects are worth watching for.

Low-price offering

All this is keeping the shares usefully lower for buyers, yet if the turnaround can proceed reasonably to plan under the new chief exec then you are looking at a price-earnings multiple in low single figures that should improve in time - hence scope for a considerable re-rating, if industry conditions allow. "With its global leadership position in precision aerospace tooling and its proven capabilities in advanced composites, the group remains strategically well positioned for the medium and long term."

The chief executive now involved was previously in this role at a French defence and aerospace group, and before that with various major aerospace companies - such that the chairman of Hampson claims he is "the ideal candidate for the job... 30 years' experience in aerospace... excellent relationship with some of our most valued customers... will greatly benefit Hampson."

So there are some useful macro and company specific factors that could combine usefully here. The next guidance on trading will be with prelims due 30 June although contracts can be announced anytime. Since they can be quite lumpy in this industry, if and when Hampson does manage to land a material one in the medium term then it should help trigger a sentiment change.

One uncertainty is whether "the new broom" chief executive is inclined to use this next set of accounts to define a low base - for he does not yet appear to have been granted options or bought shares. In principle he has incentive to clear the decks financially although in a balanced boardroom it would be hard to be self-serving.

Most investors, however, are cynical enough, especially in "restructuring" situations, to want to see a new chief executive first get his options granted, preferably buying shares too. It will be interesting to see if this one buys after Hampson comes out of its restricted period on directors' trading, at end-June.

Overall, barring a global double-dip recession, Hampson looks to be on a steady recovery path.

A late push at the close and " voila " 31.25p

Where is the support..?

8p..?

Support?

Has been hanging around and 8.50p seems to be the number.

KEEP an EYE

Last Friday "UT" below share price is a signal for the share price wants to bounce, there was buyers for the last couple days but order book was weak. With the sale of the Shims businesses (quality out cash in) last month the company has managed to bring their debt down to more realistic levels

Collapsing again I would not buy now