Enteq Technologies Share Discussion Threads

[flyingbull] 03/1/2015 19:00

The January 2015 and the annual oil stock competitions are still on. Deadline for entries is midnight on Sunday 4 January 2015. Good luck and happy and prosperous 2015!!!

[simon gordon] 29/12/2014 20:22

New all time closing low today, looks like a decaying zombie until oil starts heading higher, management certainly lucked out on a Sondex replication, just about everything has gone wrong for them.

[p1nkfish] 16/12/2014 09:36

old data - click on overview for china for petroleum.
interesting.

hxxp://www.eia.gov/countries/country-data.cfm?fips=CH

[p1nkfish] 15/12/2014 22:24

Figures here yr-yr and one month in areas by geography.

[rivaldo] 15/12/2014 12:14

NTQ's interims presentation is worth a look:



They note that "Cash absorbed into working capital to be released in H2", so hopefully cash will be back up to say $17m-$18m.

I also like the margin improvement, and:

"Overhead reduction
–Like for like H1 overhead run rate reduced by $0.5m
–Further overhead reductions targeted for H2"

It's also worth noting that this week's North American rig count is 2,324, down from 2,342 a week ago, but still well up from 2,208 a year ago.

[cockerhoop] 10/12/2014 14:27

Receivables have been increasing at a faster rate than the increase in sales though which I found concerning along with the US Drilling permit reduction which apparently is a leading indicator of US drill count.

Will certainly be looking for improvements in receivables (and therefore cash position) at the finals.

[rivaldo] 10/12/2014 12:35

Notwithstanding the current oil price, NTQ's valuation is certainly interesting.

The m/cap is now £13.8m.

At the interims, cash plus receivables less payables were $20.9m. NTQ also had $7.5m of inventories, and a further $2m of buildings.

That's around $30.4m of net tangible assets, or £19.4m at $1.57.

Even writing down inventories somewhat, and with the cash pile reducing, that's still well above the m/cap - leaving the IP and core business making say $30m of sales valued negatively.

[pyemckay] 02/12/2014 20:10

if it quadruples its share price now then its back to where it started almost 2 years ago. Shareholder destruction.

[cockerhoop] 02/12/2014 18:44

Yes, the fund is run by Jeroen Bos who wrote the fairly recently released book -Deep Value Investing.

[skyship] 02/12/2014 17:58

CHURCH HOUSE DEEP VALUE INVESTMENTS FUND:
The Fund holds a concentrated portfolio of equities (typically 20/5 holdings) that exhibit ‘deep value’ characteristics. Principally these will be listed in London but up to 30% may be invested overseas. The objective is long-term capital growth; income distributions (if any) are likely to be low. With such a concentrated portfolio of (typically) smaller company investments, volatility is likely to be high.
====================

Monthly Commentary:

Deep Value Investments had another quiet month during October. While global equity markets suffered heightened volatility, which abated at the month’s end, DVI’s portfolio participated in the down leg but, so far, values remain around the lows for the year.

As stated on a number of occasions, we own cheap stocks trading at low valuations that should be more than capable of closing the gap between current share prices and stated net asset values. As an example, we had a meeting during October with the new Executive Chairman of London Capital Group, which we hold in the portfolio. This Company now has liquid funds available which are twice the current market capitalisation.

During the month we established a new holding in Enteq Upstream, a company operating in the oil services industry. This consolidator has a strong management team that has previously transformed a similar small company, in the same industry, quadrupling its share price before it was sold to a subsidiary
of GE in the USA. We bought our position at a discount to working capital. At least we are seeing some value appearing, which bodes well for the future.

==================

[p1nkfish] 02/12/2014 16:55

Church House Investments > 3%.
Will have to look at who they are when get a chance.
Interesting.

[hastings] 21/11/2014 10:35

Yes rivaldo, good to see some further Director buying, now what about the French !

[paleje] 21/11/2014 10:31

Nice one rivaldo, not a petty gesture.

[rivaldo] 21/11/2014 10:00

Director buying just announced - great to see a non-exec spending £37,000 on more NTQ shares:

[rivaldo] 20/11/2014 10:56

News today that Ineos are to spend $1 billion on UK shale gas exploration/production:

[rivaldo] 19/11/2014 14:58

Cheers paleje and hastings. I hope the IC article mentioned the 19p per share of cash.

Good to see a little buying here having a good effect on the price.

[paleje] 19/11/2014 00:42

Thanks Hastings. IC did an online article late afternoon, their conclusion:-

IC VIEW:

Enteq shareholders can be satisfied with the strides made by the company through 2014, but management concedes that demand for Enteq's products could fall-away if a weakening oil price undermines the US rig count. Nevertheless, the company has now established a nascent presence in overseas growth markets, which should help its long-term growth prospects. The shares - trading at an undemanding 9 times forecast earnings - still support a promising, albeit high-risk, growth profile. Buy.

When I was in touch with Danny Broughton at the company a few weeks back I have to say he was spot on with his assessment and very enthusiastic towards Eastern Hemisphere prospects, which is his baby. I feel comfortable with management here which is more than I can say for a lot of co's, I accept we may need a bit of patience but I think management warrant a bit of trust.

[hastings] 18/11/2014 13:15

Some sound comments added a few thoughts of my own too but omitted to say Investec see net cash yr end 2015 at 19p per share. http://www.privatepunter.co.uk/News/cmh-ntq-sepu-18-november-2014

[paleje] 18/11/2014 12:05

:) Agreed. Might stay softish for a while as the media finds new doom and gloom oil stories but the tide will turn.

[rivaldo] 18/11/2014 11:24

And also Investec today say Buy and have raised their target price to 64p from 62p.

Hopefully the initial "sell on results" boys will soon regret their decision.

[paleje] 18/11/2014 11:10

Cheers rivaldo.

[rivaldo] 18/11/2014 10:41

Finncap say Buy, increase their EPS for next year to 5.1c and have a 51p target price.

Here's their summary:

"Enteq Upstream^: Encouraging interim results (BUY)

Half-year results saw a decent increase in drilling tools revenues, with a strong increase in profitability. Commercial progress included new Asian customer wins, investment in new products, and a focus on operational efficiencies. No impact has yet been seen from the weaker oil price. Over the next two years, we expect sales growth will be driven by new customer territories and commercial traction with new products, even in a more difficult oil price environment.

No change to current year forecasts, with EPS raised by 20% next year on a lower tax charge. The shares have bounced but remain deeply undervalued versus the company’s peers; as such we retain our 51p price target and Buy rating."

[p1nkfish] 18/11/2014 09:47

good time for the french to buy more.