Gulf Marine Services Share Discussion Threads

[wad collector] 29/4/2014 09:47

I wonder whether the Momentum Investor tip is the trigger here ;M.I. is only a small circulation set-up but it doesn't need many trades to effect the share price with small listing like GMS.
Sorry cannot post the article as paper copy , but gist of it is that the company is a niche player in a lucrative sector , and the contracts are 1-4 yrs so steady cash flow.

[philo124] 29/4/2014 08:30

Let's hope so.

[lennonsalive] 29/4/2014 08:07

If this holds today, then we are on a break out to a new level.

[mintitan] 28/4/2014 11:34

Future winner with prospects imo; good value too!

[philo124] 28/4/2014 09:38

Thanks wad.

[wad collector] 28/4/2014 09:21

It narrowed suddenly - picked up some at 154.5
Bit speculative for me , but I like companies in good niches.

[wad collector] 28/4/2014 09:16

Tipped in Momentum Investor. Spread too wide to attract me at the moment - about 6%.

[mintitan] 25/4/2014 16:58

Indeed PHIL0124; nice to see some positive momentum on lead up to the IMS.

[philo124] 24/4/2014 09:56

Bit of share price progress.

[mintitan] 17/4/2014 11:02

GMS intends to announce its Interim Management Statement on 8 May 2014.

[mintitan] 15/4/2014 17:02

GMS has held up pretty well in the last few days. Nice to see a blue share price when most companies are red. A good sign to me that the market recognises its value and doesn't throw it under water when overall most stocks are tanking. Currently under the radar I think; just the way I like it :)

[proj] 15/4/2014 11:02

well put, rivaldo. I'm out too, for pretty much the same reasons, gl all.

[shauney2] 11/4/2014 16:48

From an article in yesterdays Shares magazine.

"Downside protection is offered by Canaccord's 133p liquidation value which assumes no further contracts are won and the companys assets are sold individually on the market"

I'm hoping the price stays around this level until the update early May.Could be a good entry point if that is positive.

[sagarn] 09/4/2014 09:04

That's a shame rivaldo. Hope to see you back at some point.

Robow: 175p as a short term target will do me nicely thank you...!

[robow] 09/4/2014 08:25

as reported in the Evening Standard last evening:
Snap up Gulf, Canaccord recommends, as it initiates coverage in the oil services firm. The broker is impressed with its expansion plans since listing last month. Shares are 147p, the target is 175p

[modform] 08/4/2014 20:18

Your call Rivaldo and good luck, having said that, it's one of my best stock performer to day with no change.

[modform] 07/4/2014 19:17

You can buy it cheaper than naked trader, try hhr.

[rivaldo] 07/4/2014 15:15

:o)) Reciprocated...let's hope GMS is another successful one.

It's not often one can buy in cheaper than the Naked Trader!

[philo124] 07/4/2014 14:26

Hi riv, fancy seeing you here, happy days.

[rivaldo] 07/4/2014 14:18

I've bought in on the dip. Encouraging to see Gervais Williams in particular so keen on this one per the thread header post.

Canaccord had this to say today when they initiated coverage:

"Investment case

GMS is the largest independent provider of self-propelled, self-elevating support vessels (SESV) in the Persian Gulf and a leading supplier offshore NW Europe. It listed in March 2014, raising capital to fund an expansion program both in its existing markets where demand is strong, and into southeast Asia and west Africa. SESVs are used in well intervention and topsides maintenance & modifications, both markets that are primarily driven by ageing of the oil industry's infrastructure rather than development of new fields, and are therefore less sensitive to oil prices.

They are also used in wind farm installation, a market that looks set to perform well in the next two years with particularly strong growth in installations offshore Germany.

GMS benefits from having one of the youngest fleets in the industry, and an in-house shipyard for topside completion and maintenance of its vessels. It therefore has a capital cost advantage over many of its peers, and the flexibility to adapt to customer requirements. We believe it is currently trading at an attractive value, and that strong earnings growth over the next few years should see the stock perform well. Although the value is currently ahead of the NAV, we believe that as the company is able to grow over the next few years (from bringing new vessels to market, funded mostly by internal cash generation) the value will become more apparent.

Sector context
In a heterogeneous sector, GMS stands out as a leasing company with minimal execution risk on its contracts but very high operating leverage to charter rates. There are no direct peers listed in Europe, with most of its industrial peers privately held. We believe it is likely to trade primarily as an asset play.

Company fundamentals

We expect EPS to grow at close to 20% pa for the next three years, driven by the existing fleet expansion plan with no net pricing growth. The key drivers for earnings are charter rates, vessel utilisation, build costs & tax rates. On all of these metrics GMS is currently performing well.

Valuation

We base our target 175p on net asset value, on adjusted Quest™, and cross-check against resultant multiples. At our target the stock would trade at a 23% premium to NAV, and 10.0/8.3x 14/15E EV/EBIT and 9.9/8.1x 14/15E P/E.

Share performance catalyst

Given the lack of alternative sources for rates on its vessels, we expect the major catalysts to be results announcements (next one 1Q IMS) and large contract awards."

[philo124] 07/4/2014 13:54

In $. 30.3,36.0,42.9 fully diluted and adjusted. P/E 2014/2015- 9.9/8.1. They state.

[simon gordon] 07/4/2014 12:21

Phil,

Could you share the EPS forecasts for 14/15/16?

TIA

[philo124] 07/4/2014 11:52

Try digital look , it's on there.

[dunc8] 07/4/2014 11:31

Can anyone tell me why YAHOO FINANCE and following on from that my STOCKWATCH app for i phones - does not recognise GMS! - strange - its the only stock out of the 27 I hold that simply will not appear on the screen.