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.

Invested here because of the huge potential - now and in the coming years. Doesn't stop it hurting when the price takes a significant fall (not helped by everything else looking a touch red!).

Have grave concerns we are going to go below 200p and from there the next stop could be ...

Just had a look at the trades - MMs, what are you playing at???

Was just going to say the same thing stuartth. Its pathetic, but when buys are coming in it takes all day to get a poxy few pence on the price. Were being robbed blind here.

cheers GF.

I don't like MMs, so if you're one I don't like you. Nothing has change with this company and long term it's still a good outfit with a full order book and more to come. Best advice I can give today is to turn off your computer and go down the pub. Shoot a few frames of pool, a round of darts and 6 pints of Stella.

MS

This is getting bloody ridiculous.

MS

Down 7.2% on light volume...crazy!!

The growth prospects of this industry and possibilities for HMY are massive...just crazy to see the MM's use such rude tactics to try and get hold of our shares!! We should be back up soon! IMO

More related news from Lloyds list, all along we have talked about the UK and USA as the likely big importers of LNG, but lets not forget China..."Chinese companies are in talks to import more Australian liquefied natural gas to the nations east coast, the official Xinhua news service reported from the Boao Forum for Asia, writes Tony Gray.

If the talks are successful, the report said Chinese oil companies, including China National Offshore Oil Corp (CNOOC) and Sinopec, may also buy equity in some of Australias largest gas projects, such as Gorgon, Browse, and Sunrise.

A deal would lift Australia to the position of China's largest LNG supplier.

Australias North West Shelf project has already clinched a record-breaking US$19bn deal to export 3.3m tonnes a year LNG to a CNOOC terminal in Guangdong Province for 25 years.

Delivery will start next year.

CNOOC has also signed a preliminary agreement with the Gorgon LNG partners to take between 80m-100m tonnes over a 20-25 year period for a proposed Zhejiang terminal, and also buy a stake in the upstream project.

We will further explore co-operation in projects such as Gorgon and Browse, said Ma Kai from the National Development and Reform Commission.

From tradewinds...

"The LNG market was poised this week to hear news of the owners which have been selected as partners in Qatar's tender for up to 12 LNG ships.

Qatar's Ship Acquisition Team (QSAT) is expected to put owners on subjects for the business in the next few days. Owners are understood to have received a response to their offers from QSAT. Sources say it is what would commonly be seen as a counter but is worded as the final rate that the Qatar team is prepared to accept. "It's not what I would call a counter," one said.

Once again there is widespread industry alarm about the rates owners are being asked to agree to. "Over the last 18 months, I have been surprised to see what owners would accept but this is even lower than last time," one source commented. Owners have been asked to put in rate offers on two sizes of LNG newbuildings, one for the 200,000-cbm to 210,000-cbm Q-flex size and another for the 250,000-cbm Q-max size. The vessels are required to serve Qatar's planned 7.8 million tonnes per annum (mtpa) RasGas III, train-6 production project, which is set to supply LNG to the US from 2008.

The winners from QSAT's last round of newbuildings, US stocklisted OSG and Pronav Ship Management, are still the hot favourites to take a large swathe of the business. But market watchers expect other names to be brought into the frame as QSAT plays on newcomers' desire to find a way into the sector or expand their embryonic interests quickly.

The ever-expanding consortium of Japanese players, including the big three owners Mitsui OSK Lines, K Line and NYK, along with Iino Kaiun and trading-house players, are also expected to be keen players. Others speculate that German KG (limited partnership) funds will also feature.

Around 10 to 12 groupings of shipowners and managers were originally said to have offered in for the business. Others on the list included Teekay Shipping, Maran Gas Maritime, Bergesen, Exmar, Marine Service and V Ships' Global LNG Management.

QSAT is said to have been put owners under even more pressure to respect the confidentiality agreements for this tender. Shipyards have also been kept in the dark on the process. QSAT concluded its huge agreement with the yards that give it the options on a total of around 95 berths with Korea's big three shipbuilders. The team has been declaring options over the last few weeks but it will only match the owners with the yards once it has concluded its negotiations with the bidding shipowners.

QSAT plans to confirm contracts on the vessels by July. In the interim, the winning companies will be matched up with the country's new LNG-shipowning venture Qatar Gas Transport Co (QGTC), which has asked for a 60% stake in the vessels that are to be ordered against the business, joint venture agreements drawn up and the shipbuilding contracts finalised. This latest tender is just part of Qatar's drive to acquire control of around 70 LNG carriers as it launches its massive push to be the world's number one LNG exporter. The tiny Gulf state wants to boost its LNG exports from the existing 20 mtpa to 77 mtpa by 2012.

QSAT is due to launch its next tender for 12 large LNG ships to serve Qatargas II, train-5 production later this year. However, it remains to be seen what percentage share of the vessels QGTC will target and how much, if any, will be left for conventional owners.

Good one paul. Thanks for keeping us all up to speed and in touch with whats going on in the industry.

MS

There is a massive amount of anecdotal news surrounding LNG at the moment. What we need is some more contract wins for HMY. Given the speed that some of these projects are progressing, we shouldn't have to wait long.

Im keeping my fingers crossed that we get some.

cheers GF.

More anecdotal news...

"Spanish energy groups Repsol YPF and Gas Natural SDG are creating a joint venture which they believe will be the third largest liquefied natural gas company in the world, based on sales volume, writes Tony Gray.

The new alliance will have a marketing capacity of about 12m tonnes of LNG a year and a fleet of 12 LNG carriers, including one vessel on order.

The joint venture is structured in three stages.

In the development of new upstream projects in exploration, production and liquefaction Repsol will be the operator, owning 60% of the assets, with Gas Natural owning the remaining 40%.

In the midstream areas of transport, trading and wholesale marketing, the partners will establish a 50:50 owned company. This companys chairman will change on a rotational basis, and the chief executive will be appointed by Gas Natural.

Repsol and Gas Natural will also form a regasification partnership on a 50:50 basis to co-ordinate the development of LNG plants.

The operator will be Gas Natural and the new joint company will have the regasification rights.

Repsol and Gas Natural said the new joint venture, would be the third largest LNG company in the world in terms of sales volume, behind only Korea Gas and Tokyo Electric."

It's as if the world has just woken up to LNG. In the years to come this is going to be a massive energy source, and HMY are right in there.

MS

And its going rather cheap now is HMY. Should be attracting new buyers.

cheers GF.

A P/E of just 14 is cheap g for a growth stock like this. For those that missed it first time....................

citywire recommends again:
".... Another alternative energy source is liquid natural gas (LNG) which is a methane gas cooled to minus 260F. Since LNG is a natural gas, it burns clean and is environmentally friendly. At the moment LNG makes up only 6% of the worlds natural gas trade but is expected to grow on average 6.7% per year.

A stock that offers an indirect exposure to LNG is Hamworthy . This was mentioned as a trading idea on 10 February at 198p, the shares are now trading at a mid price of 235.5p, an increase of 18%. The company designs and makes LNG handling systems for tankers and has a healthy order book worth about 130 million. This stock is well worth keeping an eye on and should the shares slip below 230p it might be worth considering a top-up on existing long positions.

cheers GF.

Some news from HMY might put a stop to the downward drift. A good buying time.

MS

And its even cheaper now Mickey on a P/E of just 13.

cheers GF.

Punters should be buying in big time but I don't think it's on their radar screens. If you want a long term stock this is it.

MS

REsults out at end of this month, an RNS today re- to analyst meeting. Must be good.

cheers GF.

This should perk the price up a bit..........


Hamworthy plc
12 May 2005


Press release 12 May 2005



Confirmed LNG-RS contracts from Samsung Heavy Industries Limited


Further to the announcement issued on 10 December 2004, Hamworthy, a world
leader in the design and manufacture of innovative marine and offshore fluid
handling systems, has won firm orders for four more liquid natural gas
reliquefaction systems ('LNG-RS') plus an option for one further shipset from
Samsung Heavy Industries Limited ('SHI').


The contracts announced in December 2004 included a total of 11 option shipsets,
with the options exercisable by the shipyards. All those options have now
expired which is not unusual in the maritime industry as the plans of ship
owners as to required delivery times and ship specifications change. If orders
for those optional vessels are placed they will now be awarded as newly
specified orders and these contracts from SHI are the first of those.


The systems will be deliverable to SHI over the period mid 2006 to mid 2007.
Due to commercial sensitivities Hamworthy is unable to disclose the value of
this contract. These LNG tankers will be part of the fleet which will carry LNG
from the expanding QatarGasII field.


LNG liquefies at minus 160 degrees centigrade and reliquefaction is a process
which enables LNG cargo boil-off (evaporated LNG) to be reliquefied and returned
to the cargo during transportation. This enables a ship to be powered by more
efficient and lower maintenance cost slow speed diesel engines. Such diesel
powered units can provide ship owners with annual operating savings of up to
US$5 million per vessel. Historically LNG carriers have used boil-off to
produce steam to power a vessel.


Kelvyn Derrick, Chief Executive, Hamworthy plc said: 'These orders bring the
total number of confirmed LNG-RS orders on Hamworthy to 12 shipsets. They
reflect a growing trend for oil companies to seek the long term cost savings
provided by slow speed diesel propulsion with LNG-RS. The company will continue
to update shareholders on developments regarding other LNG-RS orders taken with
other ship builders when appropriate.'


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