Gulf Marine Services Share Discussion Threads

[macarre] 01/12/2014 22:11

Really can't see any negatives on this stock. GMS seem to be operating at almost capacity and have a very healthy order book.

[shakeypremis] 01/12/2014 16:05

Crude oil is up over 2% at the time of me writing this, and yet still the share price falls. Perhaps there is a large seller in the background who knows something we don't, but it doesn't look like it.

[shakeypremis] 01/12/2014 16:03

Indeed macarre, they are an oil services company. Production has not been cut (that would have hurt GMS) so I don't see how the oil price drop really damages GMS. Indeed lower oil prices should translate to lower operating costs for GMS anyway, thus giving them a better margin.

[macarre] 01/12/2014 15:22

Hybrasil - interesting to find out why you believe it has to mirror the oil price graph? They provide services to the oil industry, not the oil itself.

[hybrasil] 01/12/2014 14:20

The fall is not quite mirroring the oil price graph. I'm a buyer at £1.00

[macarre] 29/11/2014 08:17

GMS got a brief mention in this week's IC, citing it as an example of oil services business that can do well in a downturn (in Cannacord's view). I'm still a belieber (I mean, believer).

[shakeypremis] 28/11/2014 14:43

There has been huge buying down at 115. When is this going to bounce?

[toyin] 28/11/2014 14:09

Statement from 5/11/14

Please note the sentence starting "Our clients" If the market ever had it wrong its this share!


Duncan Anderson, Chief Executive Officer of GMS, said:
"As we discussed in our Interim Results, demand for our SESVs across the MENA region is excellent and the market for our assets in Europe also remains strong with our entire fleet of ten SESVs currently chartered. Our backlog has increased by nearly 50% since August with recent contract wins. Our clients are responding to the low-cost benefits that our SESV solution provides them, which is increasingly relevant in the current oil price environment. The outlook, driven by our core brownfield (opex-focused) oil and gas client base, underpins our expectation of continued strong demand going forward. This, together with our ongoing new build programme, will help to maximise opportunities with existing and new clients."

[hatter2] 28/11/2014 14:08

Wish I had got in at 115, I think my average was about 140.

[shakeypremis] 28/11/2014 12:24

It's odd that the share price has dropped quite as much as it has.

A lower oil price means reduced running costs for GMS, a production cut would have hurt GMS. Surely this will rebound? It seems irrational that the price should have fallen, but I suppose if the oil price falls further this could cause the share price here to fall further even though I don't really understand why that would be the case! The irrational market.

I have been sitting on the sidelines here waiting to get in and today I have, for 115p a share.

[koolio] 28/11/2014 11:51

I'm not a current holder of GMS, I have held in the past and will buy again if there is further share price weakness.
Yesterday, while passing their Abu Dhabi Musaffah yard I noted that the 1st hull of the mid size has come alongside the quay wall for fitting and finishing.
Good luck to all holders, I will continue to follow.

[hatter2] 28/11/2014 06:28

Just a thought and although not the same type of business, Kentz were a oil services business. I stuck with them for a number of years and through a number of 15%-20% falls. They eventually came good and I was handsomely rewarded.

Now I am not saying that Kentz are a mirror of GMS but rather a decent comparison of some of the volatility that can occur within the sector. The decision to take, at least IMO, has to be based on if I see it still as a quality business. The answer is that yes I see it as a decent business and will be happy to let the few £k I have in there ride along in the medium term.

I could be wrong and like all of us have some moments in my investing history that I would rather forget.
DYOR

[wad collector] 27/11/2014 20:18

Time to stay cool I think.

[jakedog2] 27/11/2014 19:08

ref my earlier point on liquidity......

only 30% free float, did not realise that(106m shares).....order book seized up.... with only 200K shares traded.

Some holders selling at 113p, when you look at the trades .... should not be that difficult to get out of £500M company.... more reminiscent of a micro cap with the large spread

[hatter2] 27/11/2014 17:24

Maybe Gervais Williams is exiting the stock due to the poor sentiment in the sector. Just a thought, I have absolutely no knowledge if that's the ace and no RNS as yet regarding a large sale.

[ricky46] 27/11/2014 17:07

The current secured backlog (as shown in the table below) of $547 million provides good visibility on future earnings. Our existing SESV fleet (including the Pepper delivery) is already contracted out for more than 85% of the charter time available to it in 2015.

[jakedog2] 27/11/2014 16:33

£500M mkt cap but a very, very illiquid stock. 6% spread during sell off in last hour.

[fruitninja84] 27/11/2014 16:26

I think the worry here is if production is cut then there will be vessels without work just moored up!A bit like flybe with all those planes grounded just costing the company money!

[jakedog2] 27/11/2014 16:24

Gazza12....oil price diving

[gazza12] 27/11/2014 16:17

What the hell is going on?

[fruitninja84] 27/11/2014 16:17

Seems a little harsh

[macarre] 27/11/2014 15:31

Just topped up @ 126.1. Too cheap to resist...

[robow] 27/11/2014 15:15

good time to buy some more

[fruitninja84] 27/11/2014 11:20

Indeed Hatter2

If i was intending to hold for the long run i would be tempted to open up a short to hedge my posistion, i did this and managed to get away with a smaller loss as my buy was up in the 150s

Problem with sitting on a loss is that if things do go wrong and disaster strikes with the company it can really hurt!

im likely to revisit soon just dont want to get caught out here,

[hatter2] 27/11/2014 11:11

Fruitninja, agree with your sentiments and actually topped up my holding. May have to wait a couple of years but I reckon it should come good in the medium term.