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.

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

Some serious buying today...

From the FT on Saturday, an interview by Lucy Warwick-Ching with Charles Thomas head of Jupiter Ecology Fund:

What is your current top tip?

"The increasing awareness of the need for a lower carbon environment is propelling demand for liquefied natural gas (LNG) and shipped gas. A company which particularly impresses me is Hamworthy, a leading designer, developer and manufacturer of advanced marine fluid handling products. It boasts a strong market position in this growing sector. Hamworthy is run by experienced management and has a long-standing reputation within the LNG and shipped gas industry, which has high barriers to entry. The shares trade on a price/earnings ratio of 15 and with strong growth prospects and potential for acquisitions, I am positive about the outlook for the company."

Cheers, Madison

What a corker this one as been guys still holding and thinking of adding. Seemingly we are in for a very bad winter can only speed up the process of inporting LNG.

cheers Gf

GF

Jumped ship at 230 but thinking of getting back in. Where do you see it going from here or is the smart money already in.

MS

Well 2006 we become net importers of LNG which should mean this sector should boom. I havent yet worked out the revised P/E still jet lagged.

cheers GF. Going to hold myself for more gains whatever. Read a report from Mark Slater last night where he said he couldnt see oil or gas prices stagnating /dropping for years to come.

I think Mark Slater is right. He also likes SEY.

MS

Yup saw that aswell. Only trouble is it looks like every tom dick and harry are already in it.

cheers GF.

From Lloyds List:

Hundreds of LNG ships must be built says Cook

AS GLOBAL demand for liquefied natural gas rockets over the next 30 years, more than 400 new liquefied natural gas carriers will be required to cover transportation requirements, writes Martyn Wingrove.

In order to cover the rapidly increasing shipping needs for this sector, more shipyards capable of building LNG vessels are also needed.

Linda Cook, Royal Dutch Shells executive director of gas and power, forecast demand for LNG cargoes will increase five-fold by 2030, meaning 100 more processing trains will need to be built and a fleet of more than 600 LNG carriers will be required.

Global LNG demand will grow at 10% per year over the next 10 years and capacity with increase five-fold by 2030, she said at Londons Oil & Money conference.

From a fleet of 179 ships we will need more than 600 while there are 69 under construction or on order.

Growth in the sector is driven by bulging demand from North American LNG markets, plus expanding requirements for cargoes to Europe and emerging markets in Asia, including China and India.

Growth in LNG has been enabled by significant reductions in capital costs, plus increases in train and ship sizes, making LNG more viable over longer distances, said Ms Cook.

John Martin, managing director of ABN Amro bank, carried on the discussion by urging more shipyards to enter the LNG vessel building market to keep ship costs down.

The trend in LNG shipping is that vessel size is growing, he said. We need more competition from the yards and new yards to come into the market. There is also pressure on costs from steel prices and on charter rates. Speculative newbuilds are a key driver to develop the spot market.

He expects global inter-regional trade in natural gas to treble with half of this using LNG. He forecast the whole LNG chain will need investment of $250bn to meet demand for new plants, ships and regasification facilities.

Cheers, Madison

Fantastic piece of research madders, well done.

cheers GF.

A nice ride up here aswell this morning.

cheers Gf.