Enteq Technologies Share Discussion Threads

[flyfisher] 07/10/2014 18:24

firtashia, Personally I think the new option scheme for existing directors is disgusting. That the board can profit from an option scheme struck with a low share price caused by the failings of themselves should not be allowed, whilst it may be common, it is unfair to the initial backers, who are heavily underwater on their investment. I see that the finance director was disposed of, but the rest of the board also carry a responsibility.

No wonder some institutional investors are bailing out.

[1gw] 07/10/2014 17:42

firtashia - TSR and eps growth aren't bad as metrics - I presume they're talking about "adjusted" eps since they made a loss in the last FY. I would certainly hope the board believe there's a good chance of an upturn in EPS!

If you look at the adjusted eps history over the last 3 years it is -13c, -1c, +2c (at least according to the site I've just looked at), so 30% pa cagr wouldn't be that out of the ordinary I don't think and would still only get you to c. 4c/share by the end of the 3 years.

In terms of whether the incentive scheme aligns management with shareholders we'd also have to know what it pays out if they don't hit the 30% CAGR target.

[1gw] 07/10/2014 17:04

The private punter article is on the Enteq Upstream twitter site I see, although without any comment on how insightful or not it may be...

[firtashia] 07/10/2014 14:29

Would welcome people's thoughts on the RNS of 18 Sept re the incentive scheme. To date, only p1nkfish has been kind enough to offer comment. My own thoughts are that an incentive award wouldnt be being launched at all if the board thought there was no chance of an upturn in EPS being achieved over the next 3 years. I'm hoping any sort of upturn in EPS - irrespective of whether they hit 30% CAGR or not - will act as the catalyst for the share price.

[1gw] 07/10/2014 14:06

...and in fact that was me adding a few more on the back of the above. Had to pay 23.5p.

[1gw] 07/10/2014 14:01

paleje - that is interesting (and somewhat unusual). Having looked at the TU last October and compared it with the recent (11th Sept) AGM statement I had decided they probably wouldn't update again until the interims in November.

So the fact that they (a) draw attention to this article and (b) plan to issue a TU strikes me as quite noteworthy. I have to assume that the TU will contain something a bit more significant than the AGM statement or last October's TU.

The big question for me (and the reason I say the Enteq approach to you was unusual) is why they choose to highlight that in their opinion the article is "insightful". The article was written before the latest (approx. 1/3) share price fall and effectively says share price weakness is due to stock overhang, which more than 1 poster has speculated on this board I think. However, the rest of the article basically says why (at the 32p price) the company is likely to be a good investment. Of course you can argue that the director buys effectively said the same thing, but coming so close to a promised TU I would have to say this is encouraging.

[paleje] 07/10/2014 13:20

Didn't know that thanks, read pp several times though his articles are always thorough. But my point in posting wasn't to advertise pp good though he is, it was the unusualness of the company's action in flagging it, on top of their comments last week, they are imo sending a message, how people interpret it is up to them.

[cockerhoop] 07/10/2014 12:28

The author (Private Punter) contributes to these boards under the name Hastings.

[paleje] 07/10/2014 12:20

Been adding since last week after emailing company. Today company emailed me, out of the blue, with a Sept article from the Cambridge News, its very unusual in my experience and on top of the positive comments they gave last week. The sender said I could share so I am:-

Hi Phil

A trading statement should be out within the next week or two with the interims going out in November

Take a look at the following article about us which the team here found very interesting and quite insightful.



feel free to share as we will be tweeting this article too.

regards

Danny

Danny Broughton
Corporate Development

Enteq Upstream plc, St Mary's Court, The Broadway, Amersham, Bucks HP7 0UT

The information and any documents and files contained in this e-mail are confidential and for the intended recipient only. If you are not the intended recipient, please delete the message and notify the sender immediately. Any unauthorised dissemination or copying of this E-mail, or any misuse or wrongful disclosure of the information contained in it, is strictly prohibited and may be illegal. The recipient should check this email and any attachments for the presence of viruses. The company accepts no liability for any loss or damage of any kind caused by any virus transmitted by this email.

[prop_joe] 07/10/2014 11:14

I've added today.
Based on last results I calculate current assets - total liabilities of around 33p per share. I think I understand why the share price has fallen as it has failed to deliver on its initial promises but the current share price seems way to cheap IMHO.

[woodcutter] 07/10/2014 10:46

It looks to me like Aviva want out and they still hold 1.4m shares, although other institutions are taking up some of the slack i'd expect the overhang to be around for a while yet. Tempted to add but will observe a little longer.

Cash at last results of around 19p/share, business virtually in for free...........depending on oil price developments etc.

WC

[mull3r] 06/10/2014 12:31

270000 traded at 18.25 on Friday - desperate stuff in deed. Trading at net cash what's the downside here?

[firtashia] 06/10/2014 11:27

Aviva: buy high, sell low. I can do that! Thats why I'd much rather do it myself than pay people good money to do it for me!

[cockerhoop] 06/10/2014 11:06

Aviva sold 812,000 though so explains the weakness of late - now below 3%.

[skyship] 06/10/2014 10:12

City Financial Absolute Equity fund actually bought stock - 250k. Nice to see someone doing so!

[p1nkfish] 05/10/2014 15:10

No way of knowing for certain nor being totally sure of the future $ cost of shale oil. Discovery and extraction techniques are developing rapidly and helping push down costs. If the US also lifts the export ban all hell will let loose on the markets.

We can say the shale impact on the US economy is massive and they know it. Positive impact on imports (down) and Congress won't want to see that diminish too much. It also results in fewer $'s in the hands of US enemies and dictatorial states.

The ball is in NTQ's court to prove they can exploit all opportunities. The move to spread geographies is sensible and I read they had spent well on customising offerings for the Chinese and Russians where competitors were lacking and hadn't done so so well.

I'm holding and bought to bring down average price to < directors buys.

[paleje] 05/10/2014 10:43

Is a reduction of shale wells in the US a real likelihood? A report in ST today says Apache Corp is sellinup its North Sea and other international assets to plough its efforts into US shale, they must see plenty of potential their track record for buying in at the right time has been good.

[p1nkfish] 04/10/2014 13:45

Oh, and don't forget, if operating prices determine $80 there will be real pressure to reduce that across the value chain with improved processes and cheaper suppliers. I'm not clear if that will benefit the likes of NTQ though.

I do suspect that a collapse in the # of shale wells will quickly feed through to higher prices again as supply will diminish close to demand in US.

It will also lead to a deteriorating US balance of payments again and that won't go down well. Lead balloon!

The shale boom has helped the US BoP considerably, a real fillip.

Yanks are very aware of that.

[p1nkfish] 04/10/2014 13:36

sg, US shale is one of the only bright spots for the US since the crisis. If that hits the skids there will be repurcussions over there.

As far as China goes, their imperatives are energy security and local supply and displacement of coal.

QE is tied into this somewhere too as a push down on prices is needed to reduce input costs as stimulus is removed. OPEC will be fully aware and for all we know the US my have done some deals to keep the Arabs happy.

$, Oil, QE, ISIS, Arabs, Squeezing Russia. A very complex how do you do.

I don't think NTQ should be constrained by market size as they are such a minnow and looking to spread geographically.

[simon gordon] 04/10/2014 11:58

Telegraph - 4/10/14:

A secretive group of the world’s most powerful oil ministers will soon gather in Vienna to take arguably one of the most important decisions that could affect the still fragile world economy: whether to cut production of crude to defend prices at $100 per barrel, or keep open the spigots as winter looms among the biggest energy-consuming nations?

A sudden slump in the price of crude has exposed deep divisions within the Organisation of Petroleum Exporting Countries (Opec) ahead of its final scheduled meeting of the year next month to decide on how much oil to pump.

Some members, led by Iran, have called for immediate action to stem the drop in oil prices, while the Arab sheikhdoms of the Gulf have so far argued that it could be another three months before it becomes clear whether the group should cut production for the first time since December 2008.

Whatever they decide, oil remains the lifeblood of the global economic system due to its direct impact on inflation and input prices. Brent crude – a global benchmark of oil drawn from 15 fields in the North Sea, dipped last week to multi-year lows below $92 per barrel as a perfect storm of a strong US dollar, oversupply in the system and declining demand shattered confidence in the market. Brent has tumbled 20pc in the last three months after touching $115 per barrel in June.

In the US – the world’s biggest consumer – crude for November delivery at one point last week dropped below the psychologically important $90 pricing level, raising fears that a prolonged slump could put many of America’s shale drillers out of business. Shale oil, which can cost up to $80 per barrel to produce, has spurred an energy revolution in the US, which has started to threaten the dominance of producers in the Middle East.

However, at current price levels many of these new so called “tight oil” wells are approaching the point when they will soon become unprofitable.

Continued....

[p1nkfish] 04/10/2014 10:03

because they thought there was value at that price.
more value now that it's down somewhat.
they must think they will get a decent return on their cash.

[cockerhoop] 04/10/2014 08:41

Pinkfish,If the directors are as tight as you suggest it's interesting that they were spend their own money buying shares at much higher than the current price in September.

[p1nkfish] 03/10/2014 17:26

Would agree there too.

I find it interesting to watch this as there is a chance of a decent multiple return if there are no shenanigans going on and there is growth.

Again, they are a small player in a large TAM. Even if the market shrinks to a degree they have the chance to grow off the back of bigger competitors. The big boys can only grow to the rate of the market.

Interesting to see how this plays out. I gather the management are quite tight normally and not predisposed to splashing cash. They may have overpaid on acquisition but they also raised a decent wedge in a favourable environment.

Bit like buying a house at the peak whilst selling the previous house at the same time - at the peak.

This may be me justifying my purchases of course but there is a case for holding this and waiting especially if your average price is < recent Director purchases.

The Director incentive scheme is also reasonable and lines up with the shareholders interests.

Wait and see, may even add.