Gulf Marine Services Share Discussion Threads

[exbroker] 04/8/2021 16:17

yellowdog

Have a read of the placing circular it’s in the Investor section of the website, you are a bit out of date!

[yellowdog] 04/8/2021 15:35

I saw a comment on GMS on twitter saying it was a good recovery play so thought I would look at it.

It seems net debt is $400m. Interest payments are $50m plus. They have to raise another $50m by end of 2022 and they haven't made a profit for 5 years or more.

I can see it is recovering as a business but don't see where shareholder returns will come from with so much debt to repay.

It's got to make some $50m profit just to stand still on interest payments.

If I missed something or misunderstood please explain but otherwise it looks completely un-investable.

[jfreshfield] 04/8/2021 13:10

Massive volume

[trident5] 04/8/2021 12:49

Not really - only about £1m worth.

[jfreshfield] 04/8/2021 12:46

Huge volume

[pictureframe] 04/8/2021 12:08

Good recovery story here imo

[pictureframe] 04/8/2021 12:07

Turmoil..fight with major shareholder...more recently...rights issue to clear down debt...renegotiation of loan interest...increase in vessel hire

[trident5] 04/8/2021 11:45

I doubt the new holders will be selling up anytime soon - do you know the back story here?

[pictureframe] 04/8/2021 10:30

Hmmmmm interesting.....bid?

[mudbath] 02/8/2021 13:19

...Along with the valuation of their fleet which will have been eroded throughout 2020 and earlier in the current year.

(Sector downturn forces liftboat sales at distressed prices
17 Feb 2021
by John Snyder)

[mudbath] 29/7/2021 14:57

I was reading yesterday that every liftboat from the Gulf across to SE Asia was under contract.
Rates should hopefully respond accordingly....

[exbroker] 29/7/2021 13:45

This is good dealing by the buyer. They are slowly moving the price up each day so that the momentum punters will not jump in while mopping up the loose Aberforth punted stock.
If you assume that over the next year, they generate free cash flow of £40m which maybe on the low side, and that the enterprise value of the company remains the same then the share price should be around 7p. If you get more debt reduction or the market rerates the stock, then that could be a minimum price.
Let’s hope so I am long of these from the higher levels but suspect that I might make some money here.

[pictureframe] 29/7/2021 13:41

Nice recovery

[dennisbergkamp] 28/7/2021 00:17

Have they had a raise recently?

D

[baddeal] 27/7/2021 21:16

usual suspects picking up the stock? Not sure what their combined holding is now but won't be long before they take the rest out at or close to market I suspect

[mudbath] 27/7/2021 17:52

So do we have yet another "clue" with those late 2,250,000 and 3,000,000 trades ?

[pictureframe] 27/7/2021 12:37

Volume gives you a clue

[mudbath] 27/7/2021 11:50

GMS

On the % gainers Leaderboard !!

Could it be the first of many appearances there ?

[mudbath] 24/7/2021 11:12

As the GMS story is being "reset",would it be an opportune moment for someone to originate a new thread which might better reflect current dynamics,via the header ?

[mudbath] 21/7/2021 09:20

Thanks Exbroker.

I like that "loose punty stock" phrase;for punting, rather than investing,seems to be de rigueur across AIM these days.Maybe it always was but the fact had passed me by.

Even though the price of oil has stalled;this is seemingly more than balanced by planned increases in activity across the Gulf region.

GMS should continue to benefit; making the company an attractive investment/punt at around 3.2p .

[exbroker] 20/7/2021 12:44

mudbath

I think the answer to that is as long as it takes for all the loose punty stock held by the likes of Spreadex etc to find a long-term home. I agree fundamental it looks good as long as they keep costs low and pay down the debt as fast as they can.

[mudbath] 19/7/2021 13:57

The Executive Chairman commented on June 30th 2021 :-

"The Company's performance is underpinned by positive market conditions, supporting utilisation, contracted activity...(all 13 vessels in our fleet are all under contract which is something we haven't seen since 2016 and is a very good indicator of an improving market. The 23-month contract award for the E-Class vessel was at rates significantly higher than we have seen in recent times and we would expect improvement in day rates to continue as the supply/demand dynamics improve in our favour)....the pipeline of opportunities and day rates. It is also supported by the actions taken by the Board to actively manage costs, improve operational efficiencies, and put in place an improved capital structure, which will benefit the Company's near and long-term prospects. Combined, this all serves to reset the GMS story, driving benefits for the Company, its employees, contractors, partners and investors."

Just how long will the GMS share price dally in this very low 3p arena ?

[mudbath] 07/7/2021 13:34

A steady climb in the GMS share price looks to be underway and possibly gaining some momentum.
A buy(and a half)at these low levels despite the known risks.

[wigwammer] 06/7/2021 16:16

Nice big 2m print :)

[jane deer] 02/7/2021 17:48

Whatever HL's problem was it was fixed by this afternoon as I was able to buy (and as far as I could tell sell as well) in my account today.