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.

GF, couple of bits of economic data out this week and loads of companies (20+) going ex-div on Wednesday but I think we are feeling the effects of the historically slow September, roll on October when the markets should start to pick up again.

J.

Yes think your right there Jason, this is usualy a month when fund managers are back and off load the chaff in their portfolios.

cheers GF.

Just been thinking Jason dont you feel now that your header is a bit dated?. It can be changed if you ask Ian on the help button above.

Just a thought.

Sorry that should be the contact button.

cheers Gf.

GF, thanks, was thinking the same thing last week but thought I was stuck with this header. I will get in touch with Ian and get it changed, suggestions anybody?

jasonwalt,

If you want any changes to the header, please just E mail what you want to ian@moneyam.com and I will take a look and see what I can do,

Regards

Ian

Blimey, you must be telepathic or something, cheers Ian, will be in touch soon.

Wow thats service for you, well done Ian, bet hes got a few bob on this one eh Jason.

cheers GF.

Always impressed at the quality of customer service on moneyam, hope he got in early as we did!

First suggestion for a new header from me :-
"Hamworthy global oil services leader with rapid growth potential.

Spot on Jason.

cheers GF.

Sent the request to Ian, so watch this space! Off out for a bit, see you later.

jason,

I have your E mail and I will get the title changed to what you have requested today.

Ian

Well done Ian.

cheers Gf.

Cheers for changing the header Ian.

Jason.

The change of tittle confused me briefly (it doesn't take much) - I thought a new thread had been started today, and there was already over a hundred posts on it!

Tell you what Frampton, not even the change of thread tittle as moved these today. Its an hard one to move for sure. Come on MMs I know you look in here put em up at least 3p.

cheers GF.

Still plenty of buys coming in, let's hope the MM's put the price up at start of play tomorrow! Frampton, glad you tracked us down, the change of name is the most interesting thing to happen for a couple of days. Our patience will be rewarded! with rapid growth potential.

Comparison charting.



Taken these two other companys as they were the ones listed in the Hargreave Hale Broker note.

Hamworthy = Black, Sondex = Red, Weir Group = Blue.

Pretty obvious that on the price front even though we dont have a full years trading in on the market yet, that we are trailing Sondex but we are comfourtably ahead of Weir Group. I would have thought that we would be well ahead on price comparison terms of both given the brokers note and just goes to show HMY is a well undervalued share.

cheers GF.

GF, thanks for posting that, at least another 30% to go before we get close to Sondex and the brokers have been rating HMY as a better investment, so all looking good. Just need the MM's to start pushing that price up a bit.