It is good to be in Oil at the moment. Here is a way in which you can exploit the oil bonanza in an indirect way. Hunting PLC is an international Oil Service company providing various service solutions to some of the world's largest Oil and Gas operators.
Having been through a tough 2001-2002, things seem to be on the up with the market Hunting operates in being bouyant.

The latest results were good:
Turnover 1,195m (2002: 951m) +25.6%
Total operating profit 25.2m (2002: 24.4m) +3.3%
Pre-tax profit 21.1m (2002: 19.1m) +10.5%
Basic earnings per share 6.4p per share (2002: 4.1p) +56.1%
Ordinary dividend per share 3.50p (2002: 3.0p) +16.7%

Oil and gas prices are sky high so expect a drilling bonanza. Hunting is well placed globally, and especially for Canada’s tar sands.

Vital stats:
Market value: 129m
Historic PE: 20
Prospective PE for 2004: 11
Prospective PE for 2005: 10
Dividend yield: 2.75%
NMS: 5,000
Spread: 3.8%

Solid trading statement released a couple of weeks ago.

This week disposed some loss-making assets that generated $45m.

The chart is enticing.

The stock is demonstrating good strength with the price now moving into a gap from 1.25 to 1.70 and then quickly to 2. This was the fall in June/July 2002 which came after the market realised Hunting was to be hit with the then decline in international oil exploration and drilling activity.

Things are now very different however and the price could move ahead very quickly from here.

Hunting has not been getting much press, but is a great way to play the recent surge in the Oil/Gas sector.

Also in this one for my long term PEP - fulfils criteria of profits, strong cash generation and dividends, with decent growth prospects. Results excellent - my only gripe is that "Other Activities" appeared to produce an operating loss of just over 2M on sales 58M. Hope they don't get complacent in some areas just because most are booming.

Partridge
Welcome on board !!!!
Good point.
I'll email the Company regarding that to see what it is about.
I'll post the reply as soon as I hear from them.

Ian and all

Quite happy to be in the sort of company that is mainly ignored by the masses and rampers and derampers (HWY and HDG are 2 others i hold which get little if any comment on BBs but both are performing wonderfully. And before people ask, yes i do buy shares that begin with letters other than H lol)

I only bought in quite recently, initially on a point and figure chart indicator and a small check on the fundamentals. Subsequently have done more work on the fundamentals and added to my position, with it being split part medium term swing trade and a core holding i will keep longer term.

For anyone who understands point and figure I have posted the current chart. The 3 horizontal blue lines are where successive buy signals have been given (the third needs to be confirmed by closing above 357p today) and should provide support (if needed)The first signal produced a target of 351p which was only slightly exceeded before the recent pull back. The second signal has given a target of 450p (no timescale)

Fundy
Thanks for posting the point and figure chart and the explanation - it is greatly appreciated.
My initial target was 400p (at which point the plan was to sell a third or perhaps half my holding to reinvest elsewhere) and am greatly reassured by your posting although I am a touch more bullish in that I think that price will be reached in the next couple of weeks.
In the absence of any suitable targets for reinvestment I may well run the entire holding for a tad longer.
I'll do a bit of research on the two other 'H' stocks that you mentioned above !
Cheers

;o)

Just got this from the Yahoo financial site:


Among the mid-caps, Hunting (LSE: HTG.L - news) led the gainers, up 24-3/4 at 372, after reporting a huge jump in pretax profit on soaring oil and gas prices, which prompted ABN Amro to raise its target to 440 pence from 400 and reaffirm its 'buy' rating.

Fundy - think you may be on to something with the letter H. I have done very well over the years from Halma,HBOS and HSBC, to add to your list!

Apologies for off topic all

Partridge,

HBOS is a share i have done well out of, never been in HSBC and Halma is currently a share i am analysing as it has just thrown up a very strong P&F buy signal (but i need to have a look at the fundies for the longer term)

I have popped the chart below, the buy signal at 158p had a target price of 188p which it achieved then pulled back and consolidated (having issued another signal at 174p). It has now produced another buy signal at 190p and the 174p buy signal has a target of 224p (approx 20% short to medium term upside upside)

Fundy,

Excellent post, I like your analysis of HTG. AND now even brokers are agreeing with you. As noted in the earlier Post by Lanayel ABN Amro has raised its target price to 440 pence from 400 and reaffirm its 'buy' rating. I have no intention of selling infect I regret not topping up yesterday but did this morning paying slightly more than I had hopped. Its an excellent sector to be IN. For me its a LTBH.

Fundy

Have followed Halma for 30 years and it has been a very rewarding ride. Held in PEP since 1990.They have increased the dividend in most (if not all) those years - cash generation is fabulous and they have market leading positions in a number of industries related to industrial safety. Article in the Sunday Times last week mentioned their expertise in water engineering projects. Also have small interest in oil/gas which should be doing well at present. Been quite acquisitive over the years, tend to buy well established and profitable businesses rather than turnround situations and with one or two exceptions they have spent wisely. Hardly ever borrowed any money. Last posted on HLMA thread in Dec - not speculative enough for much BB interest,but I would sooner back solid companies which prove long term winners!

Think Ill go hunting here tomorrow.

Threads a bit out of date.

thanks for heads up on this one GF ...... here's a better chart too .....

Yep certainly a better chart cyners, cheers mate.

sp interestingly poised, though special sit makes the chart even less reliable than usual ...... i think the best course would be a pretty modest stake, insofar as if the shrae bolts then you'll still make a good return and if it tumbles, the downside should not terrify

Just like VPC's graph !.

hmm! ..... admittedly a weak market day today, but 25 dma looks to have proved a bit of an excuse to resist ..... shall hold off buying and watch for the moment .... 380 may be a reasonable point, and 340 def so

Gone in this morning.(long)


Had a punt on this one this morning after further investigation and research. Risk reward ratio looks to be in the buyers favour at this market SP. Myers has a very good track record of late both long and short. SP is lower than when he tipped it. Cawkwells apprentice seems to be doing well.


The Bard of the Boleyn Is Hunting for a Bargain

Hunting PLC at 382p has a market cap of 500 million. The company has two divisions: firstly Gibson Energy, Canadas largest mid stream oil company (mid stream links upstream which is production and downstream which is refining i.e. it is involved in transportation, storage, pipelines etc.) Secondly it has Hunting Energy Services which provides services to major upstream oil companies (well construction: that sort of thing)

The investment case for Hunting is straight forward. In August it announced the sale of Gibson to Riverstone holdings, a large private equity group for 600 million. This would leave it with 400 million net cash (300p per share) and Hunting Energy Services which is forecast to make 43p of earnings in 2009.

Put another way Riverstone is paying Hunting aproximately 450p per share for Gibson and it will still be left with a debt free profitable business. So whats the catch I hear you ask? The catch is that Riverstone may walk away from the deal which was struck with oil at $140 per barrel against todays $52pb. Against this however is the fact that it has paid Hunting 50 million upfront which will not be refunded if the deal fails . Furthermore the company announced on 3rd November Hunting and Riverstone are working together towards completion of the disposal of Gibson Energy in early December 2008

In my opinion three things can happen in early December. One the company announces the completion of the disposal . Two it announces a date for completion of the disposal. Three it announces the deal is off. If one the shareprice rockets: two it goes up a fair bit, three it falls but given that the price is already discounting the deal fails, the fall should be short lived and investors are left with a bombed out Oil services play. Given that there is a good chance the deal goes through, the present price gives punters a chance to invest in a first class debt free oil services group for next to nothing.

Bear raiding prodigy Lucian Miers is the Bard of the Boleyn

Posted by Lucian Miers on Tue Nov 25, 04:52 PM in Comment



Looks cheap and look at the NAV under pinning it.

Hunting PLC

SUMMARY CHARTS DIRECTOR DEALINGS FORECASTS WIRES
2008 2009
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)
Blue Oar Securities
28-11-08 BUY 61.00 27.80 9.10 92.10 42.00 10.20
Oriel Securities
27-11-08 HOLD 56.80 26.70 9.50 79.70 37.70 9.50
Arden Partners
24-11-08 BUY 76.70 36.80 9.00 76.10 36.00 9.50
Evolution Securities Ltd
01-11-08 BUY 63.30 28.80 8.80 117.70 55.80 9.50
Kaupthing Singer Friedlander
30-10-08 BUY 48.50 53.40 9.00 88.50 36.50 10.00
ABN AMRO
29-08-08 BUY 59.65 26.39 9.08 97.27 44.99 9.53
Seymour Pierce
16-05-08 BUY 99.90 46.00 9.00 115.10 53.00 10.00

2008 2009
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)
Consensus 61.45 29.81 9.04 85.29 38.78 9.50
1 Month Change 4.05 -0.32 0.00 -7.39 -3.43 -0.12
3 Month Change -33.31 -15.12 -0.02 -11.41 -7.03 -0.01


GROWTH
2007 (A) 2008 (E) 2009 (E)
Norm. EPS 7.06% -32.70% 30.09%
DPS 23.02% 16.64% 5.09%

INVESTMENT RATIOS
2007 (A) 2008 (E) 2009 (E)
EBITDA 127.20m 73.46m 95.67m
EBIT 100.20m m m
Dividend Yield 2.01% 2.35% 2.47%
Dividend Cover 5.72x 3.30x 4.08x
PER 8.69x 12.91x 9.92x
PEG 1.23f -0.40f 0.33f
Net Asset Value PS 164.45p 454.24p 490.07p

dyor

but sp is looking very unhappy at the moment, though i concur with what you (GF) posted about this company, albeit on the wrong thread! ...... for a change and thank goodness, managed to keep my itchy fingers off the buy button

i am somewhat concerned to see that volume is already twice the norm ..... perhaps someone knows the deal is being scrapped ..... be careful

Could be right cyners, but from what ive researched 50 million is held on escrow and if buyer defaults on terms agreed Hunting have the above less legal expenses etc.

Just a reminder......


For immediate release
3 November 2008











Hunting PLC




('Hunting')




Gibson Regulatory Clearances Received




Hunting PLC, the international energy services company, advises that all regulatory clearances required for the disposal of Gibson Energy have now been received. Hunting and Riverstone are working together towards completion of the disposal of Gibson Energy in early December 2008. All conditions relating to the completion process are either complete or remain on schedule.




For further information please contact:




Hunting PLC

Dennis Proctor, Chief Executive

Peter Rose, Finance Director

what happened to the 340p support!