Hallin Marine Subsea Share Discussion Threads

[lomax99] 08/10/2009 11:37

Just joined the party, have been sitting on the sidelines for some time. Recent results/contract wins have persuaded me, I don't see this drifting much lower (famous last words) and see a good upside from here.

[fr4dge] 08/10/2009 10:37

Can't understand why this isn't doing better.

It's announced over $60m of contracts in the last 10 weeks - that's equivalent to the total revenues for the last 6 months (when they made 12p profit btw).

Without doubt, there will be plenty of other wins that haven't been broadcast.

With their fanstastic track record of growing profits & the excellent manner in which they handled the recent market dip, these should be way higher than they are.

[notalf] 02/10/2009 10:04

good day to buy, brokers have all buys
Hoodless say Very good value, BUY to 175p
FinnCap has a price target of 158 pence with a "buy" rating on the shares
Evolution Securities Ltd has a buy to £2

[ed 123] 02/10/2009 09:54

Yep, good stuff. Thanks, crawford. :-)

[fr4dge] 02/10/2009 09:44

Good find crawford.

Pretty compelling stuff IMHO.

[crawford] 30/9/2009 11:19

The squeeze continues.

180p my target by next Feb based on chart and fundamentals.

[clancrackan] 29/9/2009 20:44

Over past 7 days or so perhaps 1/2million shares plus bought with MM and considerably less PI cooperation, must be stretching very tight.

[rivaldo] 29/9/2009 15:29

Good point clancracken - and getting better too. As is the share price.

[clancrackan] 25/9/2009 13:39

£sterling dropped below $US1.60 and Euros 1.09.

With Hallin's Revenue mainly in US, Euro and Asian Currencies and trading results in dollars, if we have ongoing sterling weakness it benefits Hallin.

PS it looks like an institution may be picking up stock again, today tight at 120

[notalf] 22/9/2009 09:41

mms happy taking them too

[clancrackan] 22/9/2009 09:25

I guess Institution bought yesterday 121 ? PIs selling today.

[notalf] 21/9/2009 22:32

tree shake today?
with full year profits set to be near £16m these just look to cheap, given an order book of $75m

[clancrackan] 20/9/2009 20:07

Edison is being very conservative.

Earnings per share in the first half were 20.2 cents or 12.3 pence at the current exchange rate. Margins are "expected to be sustainable at the current levels" and with at least a $75m current order book revenue could well be sustained as well in the second half 2009
So we could imo be looking at conservatively more like 35/40c EPS at the 2009 Year End, or around 21/24 pence per share. Probably more.

Hallin reports "Overall however, returning confidence in the market is generating a more robust order pattern of demand which is reflected in our rising forward order book"

[spot1034] 19/9/2009 09:55

Hallin's interim report has arrived in the post this morning.

[sailing john] 18/9/2009 10:36

Extract from Cosalt quarterly IMS released today. very positive for offshore

"During the third quarter to 3 August 2009, revenues in Cosalt Marine were at a level consistent with the comparable period last year at £15.5 million whilst Cosalt Offshore saw revenues increase by 28% to £12.5 million."

[ed 123] 18/9/2009 10:22

Thanks, taylor20, good links. :-)

I could have written this bit myself ...

"We believe that the oil services sector will increasingly see a return of
confidence and a restoration of more normal trading conditions moving into 2010, and thus Hallin should experience externally driven recovery as well as a profit increase from the ongoing expansion of the operative asset base.

[taylor20] 18/9/2009 09:33

Captured the Finn Cap and Equity Dev. notes here:

[ed 123] 18/9/2009 09:23

I agree also.

Looking for Edison's reasoning, there was this in Monday's interims ...

"Whilst bidding activity remained high at the beginning of 2009, we witnessed a diminished level of actual contract awards, leading to increased competition and higher price sensitivity."

So maybe Edison are guarding themselves against a possible poor H2?

However, the next sentence was ...

"In recent months confidence appears to be slowly returning to the oil and gas services market, following a period of more stable prices."

Hallin's customers need to be in good shape for HMS to do well. Ignoring the race up and crash in the oil price last year, the current $70 pbbl looks very good in the longer context of oil prices. Stability around that level should be a good backdrop for Hallin to do nicely. The latest EIA stocks data showed a fall in storage at Cushing. Oil demand appears to be edging up again. If that continues, we should do well here.

With the world establishing a slow economic recovery I'd expect Hallin's management to deliver a more bullish outlook statement with the 2009 finals.

I'm still looking for 195p six months from now.

[clancrackan] 18/9/2009 09:16

Rivaldo.

Yes agreed.

Institutions could be buyers in the second half.

[rivaldo] 17/9/2009 22:18

Edison's forecasts strike me as ridiculously cautious - do others agree, or am I missing something?

HMS made $8.4m PAT and 20.22c EPS in H1 alone - do Edison really believe HMS will make just 7.4c EPS in H2? Especially given all the recent contract wins?

Perhaps they're just readying themselves for upgrades before the year end.

[philo124] 17/9/2009 21:31

FWIW I agree still holding 5000 shares for IHT portfolio; will probably rise
at least 40% over 12 months. Likely to be Director buys before too long which
will push shares up 10% for starters.

[ed 123] 17/9/2009 21:24

Thanks, Stegrego.

Link for the Edison note can be found here.



Edison estimate 27.6 cents eps for 2009, putting HMS on a current year p/e ratio of 7.5, improving to 35.9 cents and p/e of 5.8 in 2010.

In my view HMS could go up to around 195p (based on p/e ratio of 9 for 2010 estimate) when the market prices in an economic recovery.

[stegrego] 17/9/2009 18:37

New Edison note out - gives 27c and 35c forecasts 09 & 10