Enteq Technologies Share Discussion Threads

[p1nkfish] 19/10/2014 15:46

$60 ok in some better usa fields and looking to drive down to sub $50. others will be hit at $70-$75.

near term low oil will have an impact but will drive push to greater efficiency.

the low price supposed to be down to saudis now having china as #1 customer and even looking to ship at discount. usa no longer #1 customer due to shale/fracking.

impact on ISL selling into black market and russia.
saudia likes both impacts.

NTQ's move into Mid East and China is very sensible but NA impact due to low oil price likely to be more subdued (less impact) than mnany expect.

usa govt needs local oil to help balance of payments. it is of national importance, not going away.

new tech in possible zig-zag drilling?

[p1nkfish] 16/10/2014 06:55

The mistake is to believe those making money out of fracking are prepared to stop without innovating to attempt to drive down costs further to continue to make money as the environment becomes more challenging.

No one can be certain but to assume all is bad for the likes of NTQ leads to the current share price and also pays no notice to NTQ's attempts to de-risk by increasing geography and innovating.

They now have exposure to NA, ME, Rus and China/FE.

A small fish in a massive pool. With care and decent mangement they could expand for years before being crimped by TAM. Not so for some of the bigger operators.

[rivaldo] 15/10/2014 08:18

Nice start on a buy of just 3k shares - overhang now gone?

Excellent article in post 345 well worth reading, including an interview with the CEO. Considering the current m/cap is not far above net cash the potential upside here is extremely large given the global potential, even in a poor O&G climate.

[p1nkfish] 14/10/2014 14:38

I see this as a fair risk/reward all considered with their cash position. They can run a tight ship as needed to conserve cash.

[p1nkfish] 14/10/2014 14:32

looked at a cost breakdown of fracking.
dependence on state for site acquisition costs.
some good news - to get breakeven price down a very real need to address cost of horizontals.

address that and b/e price falls.
supply kit to address that and you have a market.

all eqpt suppliers will be impacted by any change in US well market but NTQ have open field to grow into a big market (even if it shrinks) and geographic expansion.

every chance NTQ might be hit but they are not so TAM dependent as bigger players and if their kit helps drive efficiency they have a ready and waiting market as pressure is applied by oil price decline.

time will tell. I expect b/e point to fall. just mho.

[hastings] 14/10/2014 14:29

May also be of interest.

[simon gordon] 14/10/2014 14:03

Bloomberg - 13/10/14:

U.S. Oil Producers May Drill Themselves Into Oblivion

[1gw] 14/10/2014 12:11

Investec and finnCap both reiterate buy according to HL.
Investec reduces target from 70p to 62p.
finnCap target unchanged at 51p.

[p1nkfish] 14/10/2014 09:03

One thing we can learn from history - the yanks often find a way to do the same thing next year at a price lower than last year.

[chizgreen68] 14/10/2014 08:47

Paleje - Economist also stated $45 average breakeven

[paleje] 14/10/2014 08:45

Sorry duplicated, not in UK, disrupted wifi.

[paleje] 14/10/2014 08:44

From Malcy this morning:-

''A trading update from Enteq this morning, it has been a longer and harder journey than most would have expected but it looks to me if the rewards are finally becoming visible. Trading is in line with expectations and revenues are 45% of the full year and gross margins are as planned. Revenue and EBITDA have shown ‘significant growth and new business to China and Middle East markets is encouraging. I hope to see Martin Perry before long and maybe it is time to look at Enteq again after a bit of a false start, me included!''

Also worth noting an article from weekend ST Irwin Stelzer, opining US frackers not as fragile as some have been intimating at breakeven $80/barrel, he suggested nearer $45, good to have some balance although there's still some concern. Prospects in the Eastern Hemisphere encouraging.

[skyship] 14/10/2014 08:39

Malcy writes this on his blog:

"A trading update from Enteq this morning, it has been a longer and harder journey than most would have expected but it looks to me if the rewards are finally becoming visible. Trading is in line with expectations and revenues are 45% of the full year and gross margins are as planned. Revenue and EBITDA have shown ‘significant growth and new business to China and Middle East markets is encouraging. I hope to see Martin Perry before long and maybe it is time to look at Enteq again after a bit of a false start, me included!"

[rivaldo] 14/10/2014 08:19

Yep, a very promising update.

Last year's H1 saw NTQ produce $0.5m EBITDA, and now we're told that the 18th November EBITDA will produce "significant growth".

And NTQ has $14m (around £8.5m) net cash too, against a £14.4m m/cap.

As well as the first sales into China and the Middle East, I also like the sound of this:

"New technology progress includes the commercialisation of a new data transmission system (pulser), new software developments and progression of further technology licensing opportunities."

[1gw] 14/10/2014 07:12

Trading statement out. In line with management expectations apparently but decidedly optimistic in tone I would say.

"Revenue and adjusted EBITDA during the period has shown significant growth over the same period in the previous year."

[1gw] 13/10/2014 15:00

Trading statement tomorrow? Last year it was Tues 15th October. Although the statement in post 325 above that "A trading statement should be out within the next week or two" of 7th October suggests it wasn't particularly firm at that point.

[p1nkfish] 07/10/2014 21:45

In this case I have little sympathy with the original backers. The likes of AVIVA have teams of well qualified people making decisions on what to back. NTQ is just doing what the market is for, raising capital, allocating and executing to a plan.

I would not have bought into NTQ on float and I'm not as clever as Aviva. At that time I would have considered it too speculative whereas now it is erring on the side of investable in my book.

A purchase made now lines up with the incentive plan, don't look back or feel sorry for the original backers they will use to offset against gains elsewhere, give it 3-5 from today.

Beat the big boys. Buy low, sell high.

[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.