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.

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!

indeed, though the whole market is so dire that going short of almost any stock is a profitable exercise .... if the (partial) t/o fails, then there is prob at least a further 1.00 downside, but it it goes through, then the upside is much greater

A lot of oilys down up to 10% on friday.

Fear within the sector at the moment.

very lively today ..... positive action imminent or just wishful thinkers?

Yep it really went for it today which leaves me hopefull of the sale news appearing anytime now.

Energy services firm Hunting said on Monday it had completed the delayed sale of its Canadian oil and gas division for C$1.26 billions ($1 billion) and would step up its search for acquisitions with the proceeds.

thanks GF .... you're a star ..... not sure of the upside at present

Looking good cyners looking good.

what's a reasonable upper limit? .... any idea? .... can't find the original note you posted

just e-mailed you

Original note here cyners, from charts its anybodys guess where they go from here i reckon......

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 Nov 25, 04:52 PM in Comment

just took my profit ..... sp is more likley to stagnate or fall a bit from this level, at least for the moment

Yep might go for the same.

had a good run here.

I'm back in.

Added yesterday looking for 500p.