Enteq Technologies Share Discussion Threads

[1gw] 20/2/2017 08:07

Moving up again first thing this morning. Trying to find some volume?

[1gw] 17/2/2017 13:07

Nice move up in the price they're offering to buy at even if (or is it because?) no-one seems to be selling (or buying for that matter)...

[rivaldo] 06/2/2017 12:29

News report today:

"DJ Oil Steady as U.S. Shale Shows Signs of Resurgence
By Kevin Baxter and Jenny W. Hsu

Oil prices were little changed Monday as reports of increased drilling in the U.S. dampened appetite among investors following last week's 2% uptick.

The April contract for global crude benchmark Brent was down 0.14% to $56.72 while its U.S. counterpart West Texas Intermediate edged up 0.03% to $53.86 for March deliveries.

Oil-field services company Baker Hughes reported that shale oil rigs in the U.S. grew by 17 last week to total 583. This led many analysts and market observers to predict that 2017 will be the comeback year for shale oil after two years of cost-cutting and bankruptcies.

"We expect a strong revival in U.S. shale oil production and expect yet more rigs to be added to the market," said Bjarne Schieldrop, an analyst with Stockholm-based SEB bank.

He said he believed that spending on U.S. onshore oil exploration and production will rise by 30%-40% in 2017 and the rig-count could be higher than 1,000 by 2019."

[rivaldo] 01/2/2017 12:02

New product news - they're still alive :o)) And like buses, it comes in two's....



"Release of Inclination While Drilling (IncWD)
January 30 2017 .

Enteq is proud to announce the introduction of the Inclination Whilst Drilling (IncWD) feature as part of its latest 2.50 xxMWD-PC release.

IncWD allows the user to monitor well build real time allowing for rapid and accurate adjustments of well trajectory potentially reducing drilling time and giving the optimum well path.

To download the PDF flier for this feature please click on this link

etc"

And:



"New Software Release v2.50 of xxMWD-PCSuite
January 30 2017 .

Enteq Drilling is please to announce the release of version 2.50 of it xxMWD-PCSuite

The upgrade has introduced Inclination Whilst Drilling and invaluable feature which gives a stable inclination measurement which allows the driller to monitor the build of the well allowing for quicker and more accurate trajectory adjustments

Other key features of V2.50 include.

Enteq Unique Mode.
Checks downhole hardware in order to enable enhanced surface software capabilities such as IncWD.

etc"

[spob] 12/1/2017 18:37

thanks for the reply

keep me busy for a while

although i see we already have quite a few in common

[spob] 12/1/2017 17:48

You can see volume on here

[hastings] 12/1/2017 17:20

Also picked a few up today following rivaldo's highlighting the volume.

Not sure whether this interesting read from last month has been posted before, so apologies if that is the case.

[spob] 12/1/2017 17:00

Hi Gingerplant

Interested to know what other stocks you are into at the moment

[gingerplant] 12/1/2017 16:24

Surely it's the price of oil improving?

Market Watch: "Oil prices traded sharply higher on Thursday, getting a boost from indications that major producers are cutting back output, strong demand growth in China and a slide in the dollar.

[cheshire man] 12/1/2017 16:17

Maybe a tip out there we don't know about ? very nice finish to the day anyway :-)

[rivaldo] 12/1/2017 16:17

Agreed re your post 562 1gw. Consistent buying this afternoon indicates to me more than just someone "seeing what happens"!

[1gw] 12/1/2017 15:51

And now someone buying at 23p. What's going on? Someone now short of stock or just seeing what happens if they move the price up?

[1gw] 12/1/2017 14:46

I think a key difference between Enteq and most (if not all) of the other service companies is the huge cash pile that Enteq holds relative to its market cap. Which suggests to me that the underlying business is valued at not much more (or perhaps even less) than breakeven in perpetuity and so I would have thought that the share price ought to be more highly geared to any positive change in sentiment regarding the prospects of the underlying business.

[rivaldo] 12/1/2017 13:44

Interesting - two large trades of 2.24m shares at 19p, and an immediate tick up. Clearance of an overhang?

NTQ seems to have been left behind in the revival of oil service stocks. Perhaps this is the start of a further rerating.

[rivaldo] 04/1/2017 14:47

Three separate fracking projects could finally start in the UK this year. Excellent prospects for NTQ perhaps:



"Three separate fracking projects could crank into action this year as Britain’s shale gas industry finally gets off the starting blocks after years of delay, according to industry chiefs.

Hydraulic fracturing at a site in Kirby Misperton, North Yorkshire, could start within weeks after a judge rejected a legal appeal by environmental campaigners and residents to halt the project, led by Third Energy, just before Christmas.

Activity at the site in North Yorkshire could start within weeks. Two other operators — Cuadrilla Resources and iGas — hope that they will be able to start operations at sites in Lancashire and Nottinghamshire this year.

A proposal from Cuadrilla to drill four wells and frack for shale gas at a site near Blackpool in Lancashire is well advanced. Planning consent has already been granted and Cuadrilla hopes to finalise plans for the scheme by the end of this month, said the company’s spokeswoman Jacqui Reid. “We hope that we can finally get going,” she said, adding that she expected fracking to start this summer."

And:

"Tom Pickering of Ineos Shale, another operator with licences across the East Midlands and Yorkshire, said that the group planned to submit applications to drill about 10 exploratory wells. He said that it planned to invest £500 million in shale development."

[rivaldo] 20/12/2016 08:41

Looking strong at present and moving up on small buying - not much stock around perhaps.

The m/cap is still well below the cash pile.

[paleje] 30/11/2016 14:40

Looks like OPEC is giving US frackers the green light, a few dollars/brl more and they'll be piling back in, then up goes production reversing any benefit from OPEC cuts and the price falls back shooting both OPEC and the frackers in the foot:) At least until demand increases, we don't know about that yet.

All I can say is get in there guys and get some equipment sold pronto.

[paleje] 22/11/2016 16:13

Yes that's pretty much how I see it, Che7win.

But in capping the upside (price wise) they are shooting themselves in the foot because then need higher prices to make fracking sustainable. It's catch 22. So I can see possible near term more business for NTQ but medium-longer term not so clear. Just my opinion, Mr Trump could surprise either way.

[che7win] 22/11/2016 10:33

Thanks rivaldo.

Trump it is thought is positive for US oil production, he has made some blunt statements about Saudi imports. That should be positive for NTQ, but would not help the wider oil price if it encourages US production.

Saudi are going to push through some kind of fudged OPEC deal, but you got to wonder for their long term plan - US fracking is going to cap the upside.

NTQ is well placed going forwards.

[paleje] 22/11/2016 10:10

If US frackers storm back into production en masse, won't they risk recreating the same over-supply problem that OPEC is looking to cure? There must be a balance somewhere but I don't see the US volunteering to cap production, admittedly there could be higher demand if Trump's growth plans work out but there are lots of ifs imo.

[rivaldo] 22/11/2016 09:46

Nice buying today, perhaps on the positive OPEC noises - and new recent highs.

The £10.9m m/cap is still well below cash however, let alone the other assets outlined in above posts - or with anything at all for the business itself.

che7win, perhaps they could rent part of the 30,000 sq.ft facility out, but presumably it would have to be relatively short-term in case of a return to sizeable production, which would be offputting to potential tenants. Perhaps best to email the company and ask them directly.

[che7win] 18/11/2016 09:52

1gw/rivaldo,
could they not rent out part of the manufacturing facilities or is that just unfeasible for the short term? Even if it was just for storage facilities surely they could leverage that asset.

I guess the market is expecting no turnaround in prospects in the immediate future.

It does look undervalued at this price to me, and cash is being received as the working capital diminishes for now.

They also have opportunities to buy distressed assets if they so chose? Would they consider that?

[1gw] 18/11/2016 09:30

In the annual report, the "land and buildings" is mainly buildings ($1.8m nbv at 31/3/16) rather than land ($0.5m), so question what manufacturing facilities would be worth in a prolonged downturn.

But all the same, I am still puzzled by the apparent disconnect between assets and market cap. As I read the accounts Enteq has:

$15.2m cash & equivalents
$ 0.7m working capital ($1.6m receivables, $0.9m payables)

Plus:
$4.5m inventories
$3.0m property plant and equipment

Again, as I read the accounts, in the half they reported $1.2m of "cash and shares" admin expenses (i.e. $1.46m less $0.03m forex less $0.23m D&A). They also spent $0.5m on inventory.

So even allowing for a lot of bad debt in the receivables it seems to me the basic cash +/- working capital gives them comfortably more than the c. $12.8m market cap (60.5m shares x 17p/share x 1.24 xrate). Then you have the inventories and property, plant & equipment (not to mention intangibles) for nothing.

Neil Warner stepped down in September so that will help a bit with admin expenses going forward.

So it all feels like a no-brainer - shares at this price appear to discount the business not recovering for a long time - which makes me feel I must be missing something. I suppose if they really had to shut everything down and pay off remaining staff there would be redundancy plus maybe some remediation works required on closure of manufacturing facilities? But that seems an extremely pessimistic scenario to me.

[rivaldo] 18/11/2016 07:38

Interims out today - the cash pile is actually UP to around £12.2m (well ahead of the £10.3m m/cap).

New contract in Saudi Arabia sounds promising, and H2 will apparently be better than H1 was, though revenues will be lower than prior expectations.

Worth noting that NTQ also own $2.5m (at cost) of land and buildings as outlined in the narrative today:



Management have done a superb job in hunkering down. There are glimmers of light, but recovery is going to take a while - unless the global opportunites NTQ talk about start to come through.