Enteq Technologies Share Discussion Threads

[rivaldo] 18/6/2014 07:28

Indeed - even a £10k buy from an FD is worth noting as invariably the FD is the poorest-paid and least wealthy Board member. And they're often the best-informed.....

[p1nkfish] 18/6/2014 07:08

FD buy at near top $ on the day.
Confidence being shown.

[p1nkfish] 17/6/2014 17:47

buy rating from finncap.

[rivaldo] 17/6/2014 15:52

Yep, 1.47m shares already traded today - hopefully a big seller being cleared out.

[1gw] 17/6/2014 14:51

Some relatively big trades going through again today. Oil and US natural gas prices in a healthy zone (for drillers). Things looking up...

[rivaldo] 17/6/2014 08:40

Investec have increased their target price to 70p from 67p after the results - they go for 4.2c EPS this year and 5.7c next year, with their forecast $18.4m cash balance equating to 19p per share.

Here's the first page of their Buy rec:

"Prelims in line: new Chinese distributor, forecasts unchanged
33.3p 70.0p

The results are in line and contain few surprises given the detailed pre-close
update in April. The appointment of an exclusive Chinese distributor, to gain
access to this potential growth market, and a very small technology
acquisition ($200k upfront) is new however. The company continues to make
progress in its organic strategy to provide a full Measurement While Drilling
(MWD) system. Improving industry sentiment is encouraging, although not
enough to move our forecasts yet which remain unchanged. Buy retained.

 Trading: Full year revenue was $24.6m, y-o-y growth of 24%, ahead of our
$24.0m while adjusted EBITDA of $1.9m was in line with our forecast. The cost
base has been reduced to re-align with the current organic strategy and
underperforming product lines have been restructured. Net cash at period end
was as expected, at $18.8m.
 Outlook: sentiment towards drilling rig utilisation and capex investment in
North America is slowly improving, providing a potentially helpful tailwind. The
focus on an organic growth model, due to the lack of appropriately priced
acquisition opportunities, is resulting in an expanded product range. The
company is also working to expand its service offering and geographical reach
(including the Middle East and Russia). Management still believe in their
longer-term 'buy and build' strategy, but recognise operational and financial
improvements have to be delivered.
 The group has acquired the IP and assets in relation to a drilling motor
technology for $200k but with an earn-out of up to $1.95m over 5 years. The
acquisition fits in nicely with the group's existing MWD equipment but we do
not expect any incremental revenues until commercial progress is clearer.
 Valuation: Our international peer group CY15E PER based target price
increases to 70p (from 67p) on modest peer re-rating. Key risks: Continued
gas price volatility in the US, competitor innovation."

[woodcutter] 16/6/2014 12:32

taken an intial position this morning, good outlook statement, half the market cap in cash and director buying, all positive signs. Need to keep an eye on the working capital though, don't want receivables to run away.

good chart reversal too, needs to break trend resistance, if it does lets see if it holds.



Woody

[firtashia] 16/6/2014 11:26

Good volume traded again today, over 100k so far

[paleje] 16/6/2014 11:16

IC have tipped them this morning.

SHARE TIP UPDATE:
Enteq's shares have continued to drift lower and they're now 24 per cent below our buy tip (49p, 16 Jan 2014). Adjust for cash, though, and they trade on just seven times 2015's forecast earnings, which is too cheap given the near-term potential for recovery in the North American drilling market. Buy.

[paleje] 16/6/2014 08:49

Todays FT has an interesting article, can't paste it all:-

US petroleum production hits 44-year high
By Ed Crooks

"......US production of liquid petroleum is surpassing its previous peak, reached in 1970, in the latest landmark for the country's shale oil boom.

Four decades of decline in US oil output have been reversed in just five years of growth............However, the US government's EIA has predicted that production will peak again around 2020 and then start to decline....."

[p1nkfish] 16/6/2014 07:46

top $, didn't screw around looking for a penny off.

[rivaldo] 16/6/2014 07:25

Things certainly must be looking up - the CEO's just bought another £74,000 of shares at 37p:

[paleje] 16/6/2014 07:25

Looks like Martin Perry thinks things are looking up.

[p1nkfish] 13/6/2014 15:11

Any territory with the chance of finding oil/gas will be drilling like crazy for it.

Decent 350K gone through.

[p1nkfish] 13/6/2014 14:14

They have laid good foundations and prep'ed product for foreign markets.

[rivaldo] 13/6/2014 14:05

Cheers paleje. MGW's got the wrong end of the stick here - NTQ have definitively stated for some time, and again today, that they're looking at organic growth and are not looking at making large-ish acquisitions for a while yet.

Though it's good to see that today's small $2.2m technology acquisition is almost wholly deferred and contingent on performance.

IMO the market's patience wore thin a long time ago! Which explains the share price. Now that performance seems to be stabilised - and improving - I don't think we're far away from decent upside if it continues.

[paleje] 13/6/2014 11:08

Indeed Rivaldo, a bit more evidence would be nice, Malcy's Blog this morning echoes that thought. I'm still in since before the trading update so I'll just stay with it for now and look to add if and when...hopefully before too much evidence has emerged:)

From Malcy:-
Figures this morning from Enteq where revenues are up 24% and significantly new customers account for 25% of that total. The outlook for their addressable market is very positive and with new product lines in the US and elsewhere that growth should continue. However, I always thought that the Enteq model would have provided significantly more acquisitions than it has so far and accordingly the timescale has more than drifted and the market's patience is wearing thin. Expansion now into the Middle East, China and Russia sounds good but I look forward to seeing a bit more dynamism in the back yard before the stock is a buy.

[rivaldo] 13/6/2014 09:01

Agreed, looks like trading is on the turn here. The $1.9m adjusted EBITDA is good to see.

They still have around £11m cash against the £21m m/cap, and overheads have been reduced by $1.5m per annum.

With a good H1 we could see quite significant upside from here.

[paleje] 13/6/2014 08:47

Results this morning in line with trading statement, US outlook set to improve and a significant initial $2m order from new Chinese distributor. Steadily on track which is ok to my thinking.

[p1nkfish] 23/5/2014 10:51

Wonder where they picked them up from.
Good to see in any case.

SE Asia Sales Mgr near an important field: hxxp://enteq.com/index.php/component/content/article/94-subpages/enteq-companies/enteq-news/182-enteq-upstream-appoints-cs-fan-as-china-and-south-east-asia-sales-manager

[rivaldo] 12/5/2014 14:01

Good to see Schroder's now declaring a stake of over 5%, with 3.07m shares:

[mozii] 28/4/2014 17:32

Interesting volume near the close, let's see what's behind it.There were mixed view on the last trading update but mostly positive, tomorrow is going to be interesting day

[pugugly] 28/4/2014 17:02

Over one and a half million shares traded today - Looks as though an overhang might have been cleared - Largest daily volume or possilby 3rd largest daily volume in the past year.

Will be interesting to see the market reaction tomorrow.

[rivaldo] 17/4/2014 11:11

Hmmm. Glad I only had a small initial stake :o))

However....NTQ's m/cap is now just £21.5m, against a £11.5m cash pile and $24m historic revenues.

Growth is now to be organic rather than acquisition-led, so the cash pile shouldn't be overly depleted.

WH Ireland now expect $2.3m PBT this year to March'15, i.e 3.9c, or 2.4p (after 2.2c adjusted pre-exceptional EPS for the year just gone).

So £10m EV plays £1.4m PBT for this coming year.

WH Ireland's target price drops to 54p, which would be an ex-cash P/E of 13.

I'm not sure the share price will go far for a while, and it may drop further. I'll hold and will top up at the right time, as imo NTQ will succeed eventually given the management and connections, as long as industry conditions remain stable.