Enteq Technologies Share Discussion Threads

[hugepants] 14/9/2016 20:26

Decent AGM update. Im guessing a lot of the competition won't survive this industry downturn so NTQ should ultimately benefit. In the meantime I wonder if they are vulnerable to a bid. There is no big shareholder to knock back a decent offer. Net working capital is about 25p which I think would be the minimum any offer would have to be priced at.

[yasx] 13/9/2016 18:39

1gw,

There are other assets aside from cash - these are not reflected in the price.

But, if/when the actual business turns then the move will be very sharp indeed.

This is a good company for an acquirer seeking access to cash to snap up - they can then focus on synergistic benefits from acquisition of the other parts of the business.

[rhomboid] 13/9/2016 18:30

I looked at this company a month or so back, I was put off by the exec remuneration for the exec directors , even at the current reduced levels it doesn't seem sustainable or rather justifiable ,for such a small struggling business. I'd also no way of verifying how competitive their product suite is against the market leaders in cost terms or indeed performance. On the flip side I like the cash position and their focus on other costs but that they only really are attractive as an investment if you can see a track forward to meaningful uplifts in business. I can't but I'm not an expert in the sector.

Still on my watch list

[1gw] 13/9/2016 17:58

Steady as she goes then.

Remarkable lack of trading interest it seems to me, given the cash position and outlook statement. I last bought on the 15th June update, when again I was surprised at the apparent lack of interest. I suppose, given the environment, it may be a while before tangible results (other than cash preservation) come through and that may be deterring those looking for a quick return.

[yasx] 13/9/2016 16:28

"The Board and management of Enteq continue to believe in the potential for both a market recovery and a strong long term future in a stabilised trading environment"

Cash unchanged from the last time the Company reported which is a tremendous feat. The shares trade at a significant discount to cash and an even more significant discount to TNAV.

[rivaldo] 13/9/2016 11:41

AMG statement just out - remarkable really given the trading conditions.

The cash pile is almost unchanged at around £11.3m (against the £9.7m m/cap), there should be further savings from the Board changes made today, and trading is in line with expectations:

[yasx] 12/9/2016 21:02

1gw,

Underpinned by cash with the potential of gaining traction in the underlying business. Costs have been reduced dramatically to reflect the state of the energy markets and cash levels have over the past year increased marginally - I continue to hold since this has a solid balance sheet.

[1gw] 12/9/2016 16:01

All very quiet over here ahead of (I believe) tomorrow's AGM and (hopefully)statement.

[escapetohome] 01/9/2016 23:08

OIL SERVICE STOCKS UNDER PRESSURE AMID DROP IN OIL PRICES

[ 01 Sep 2016 19:11 ]
WASHINGTON (Alliance News) - Oil service stocks are seeing substantial weakness during trading on Thursday amid a steep drop by the price of crude oil. The Philadelphia Oil Service Index is down by 2.2% after hitting a nearly five-month intraday low.

The weakness among oil service stocks comes as the price of crude oil for October delivery has tumbled USD1.33 to USD43.37 a barrel.

Diamond Offshore (DO) is leading the oil service sector lower after the deepwater drilling contractor said a drilling contract with Petrobras was terminated prematurely.

Copyright RTT News/dpa-AFX

[escapetohome] 01/9/2016 12:44

Well this seems to have dropped a little today, a little disappointing but consolidation for a couple of weeks may help long term strength.

[escapetohome] 30/8/2016 21:58

I have bought a few thousands worth. Could there be industry consolidation and a biggeer fish looking to gobble this up?

[hugepants] 30/8/2016 21:49

Still looking quite perky here. Is there a background buyer?

[escapetohome] 26/8/2016 15:18

Nice little rise , one or two a week is just what the doctor ordered.

[escapetohome] 26/8/2016 14:15

Yup the earlier £2,000 buy was mine on the back of YasX recommendation. He is rarely wrong!

[hugepants] 26/8/2016 14:10

perking up a bit here

[yasx] 25/8/2016 08:34

Fundamentally undervalued and the chart is stunningly poised for a significant breakout, and delightfully so.

[1gw] 24/8/2016 11:52

Yes, good to see some action over here.

[rivaldo] 24/8/2016 11:28

Nice - 640,053 shares just reported bought at 15p....

[yasx] 09/8/2016 09:52

The medium term chart is truly sensational for buyers getting in at this level - the fundamental picture supports a significant rise going forward.

Only rarely does one see a chart as enticing as this which does not go on to make a stellar move higher.

[yasx] 04/8/2016 12:27

Weaker pound leaves this with cash of over 19p - there is the underlying business, and all indications are that they have maintained relationships so the current price not only discounts the level of cash but a potentially profitable business with the right breeze behind it.

Should be over 20p to begin with, and the chart is a mouthwatering prospect.

[firtashia] 02/8/2016 11:36

hxxp://www.telegraph.co.uk/business/2016/07/31/texas-shale-oil-has-fought-saudi-arabia-to-a-standstill/

[saucepan] 29/7/2016 07:11

yasX: thanks for your further thoughts; appreciated.

[yasx] 29/7/2016 00:20

Incidentally chaps, another in the oil sector that trades at a discount to cash (and a significant discount it certainly is) is AEY. But, the problem is that Potter who runs the show seemingly has no interest in trying to secure any deal and is merely being paid to do very little - he does not seem agitated to change affairs. But, why institutional holders sit back and let him carry on is perplexing.

Several years ago Potter rejected a bid for Sound (bid made on the basis of Sound paper) and rejected the (from memory) 3p offer or whatever it was on the basis it did not value the assets (being mainly cash). Since then he has only sorted out some decommissioning liabilities and that is it. The cash continues to reduce each year and the price of the shares (1.6p) versus a cash pile more than twice that reflects the fact that the market thinks he will continue to do this indefinitely. I took him to task on this issue several months ago and during our lengthy telephone chat he was adamant that he was trying to use the cash to make an acquisition but for the past couple of years had been unable to identify anything. It is remarkable that with the depressed oil price earlier this year, and assets being very attractively priced back then, potter simply could find nothing to buy. that being the case, he ought to return the cash to holders of equity. i bought in several months ago - it has inched higher, but, it continues to trade at a steep discount to cash.

[yasx] 29/7/2016 00:12

Saucepan,

The shares are underpinned by cash, which has recently increased, far less dissipated as a result of disproportionate and unnecessary spend. This shows that they are mindful of not wasting the cash on the balance sheet and if the underlying business turns around (there is a possibility) then the contribution to the bottom line will be significant. I will write a detailed post over the next day or two. Separately, the chart is as good as one might see, and it was the chart that initially alerted me several weeks ago, though ordinarily I tend not to invest on the basis of charts, especially not when it comes to resource tiddlers.
The moving averages are beautifully positioned, and the basing formation has been an extended one with a breakout in recent weeks. All shaping up nicely.

Hugepants make an interesting point re Hawkwood and that noting a cheap stock with a majority holder tends to be bad news, but a significant but non controlling party is welcome. I recall several years ago Prosperity Minerals, listed on AIM, sold one asset which generated cash proceeds far, far in excess of the market cap at the time, with other assets equally attractive thrown in for free, yet the stock traded at a discount not just to overall NAV but to the cash pile. But, then, as expected, we s aw a string of related party deals and the cash essentially eroded and there wasn't much left. A bid for the remaining shares did come in the end so it was not all doom and gloom, but it hardly ever reflected the actual cash position, let alone anything else.

As regards SLP, I must say it really is rather peculiar. I first thought that the issue of potential strikes might be the impediment to the shares racing ahead, but that has not stopped the likes of Lonmin or any other Platinum plays. I know Miton selling has held it back, but it is a concern that no notifiable holder is emerging or emerged to take the Miton slack and another fund was also bailing out. It seems retail minority holders are absorbing the shares that have been offloaded, and that is usually not a good sign. There is a huge chasm between the price of the commodity and SLP shares - something has to give, and if there is a reason for this variance we shall know it soon. If not, they are ridiculously good vale. I have a reasonable holding, but did sell a few in the past few days to bank some profits in the event things are not as rosy as they seem but continue to run the rest for potential upside.

[hugepants] 28/7/2016 20:14

Well there's certainly a few years of losses factored into the share price. Based on the H2 results current annual losses look to be about 1.5p per share. But at the current exchange rate there's net working capital of 26.5p including 19p of cash. There's also about 3p of US property assets. So at current 14.5p share price there's a big margin of safety here.

I think its a real plus that the largest shareholder is a value fund, Hawkwood with 8.5%. All too often when you find a stock that looks this cheap it has a controlling shareholder with 40% of the company.