Hunting Share Discussion Threads

[jw330] 03/3/2022 08:08

hopefully will bring more contracts in USA with her massive phone book having worked at schlumberger for 33 years

[stevieweebie2] 03/3/2022 07:30

https://www.investegate.co.uk/hunting-plc--htg-/rns/proposed-appointment-of-non-executive-director/202203030701024376D/Big Dog.

[jw330] 23/2/2022 19:46

blackrock buys another chunk. they must be excited about the update coming up in March!

[robertball] 16/2/2022 06:50

Step change in shake investment

[jw330] 10/2/2022 15:00

inflation red hot in USA and oil is marching towards 100 dollars. Hunting looking very tasty now!

[aublune] 19/1/2022 22:09

www.communityimpact.com/austin/pflugerville-hutto/business/2022/01/13/cumberland-additive-to-relocate-and-expand-within-pflugerville-and-invest-96m-per-economic-agreement/

Link to good news on cumberland additive which is a Hunting investment

[aublune] 19/1/2022 09:25

What was the p/book in January 1st 2020?

[aublune] 18/1/2022 20:12

WTI crude oil just hit a new record price level since all the way to 2014

[aublune] 18/1/2022 06:48

Brent oil prices top $85, the highest level in seven years, as geopolitical tensions flare in the Middle East

[flyfisher] 15/1/2022 06:21

Strong rig count figures.

[stupmy] 13/1/2022 13:43

I struggle not to bank jw. I believe it's got further gains to make. Just speculatively hoping it'll pull back to form a cup n handle. If it does, I'll buy some back, if not I'm happy to start the year with a good profit.

[jw330] 13/1/2022 13:14

up 50% in a month is a great return but if you look at the stocks history when the thing went up it hardly had any pull backs before doubling so I'm going to hold on until at least it reaches book value I think. GLA

[stupmy] 13/1/2022 12:50

I've closed the last of my positions around 220.5. Took a while to come good, but it's been a good trade. Reason for closing is very speculative. Beautiful move up from a rounded bottome formation. I'm just wondering (hoping) whether we'll get a pull back from the 222 area as the price back tests the break down from the rising TL support (Oct 2nd 2021, Aug 20 2021, Sept 20 2021) that occurred on Oct 13 2021. You could argue that the back test already happened on Oct 20th 2021, but I've taken my profit and would be very happy to buy some back if the price backed off now. Areas I'd watch for would be 203, 169 and 144/145. The way the share price has risen though, it's not that easy to believe I'll get my re-entries. GLA

[ldrcvm] 12/1/2022 12:21

On the face of it HTG is ridiculously cheap, valued at less than net currenr assets (£377m)
The key to it is imo the shiftability and true value of the stubbornly high inventory which makes up the bulk of the above (£197m)
However shareprice at 215p discounts a chunky write off which may well not happen.


Given sentiment in the energy space right now I think we could see it trade much higher.

[pireric] 11/1/2022 18:32

Thanks for posting, philanderer.

Strength in both the oil and gas markets is probably helping sentiment alongside broad sector repositioning. Looking at the US players, 2022 has got off to a strong share price start for most of them on optimism that production needs to come back and oil prices are headed higher.

Stating the obvious, US Feb 22 Natural Gas Futures are at >$4.1 at the moment which remains very elevated in the context of history. Likewise, crude oil has been showing remarkable strength after the Omicron induced dip, and WTI on Feb 22 contracts is back above $81. That is higher than any levels seen during 2018.

The missing piece of the puzzle for the oil services companies is seeing that translate into capex and also for Hunting, US production growth. I'm a believer in current pricing stimulating production output and and a loosening of the capex belt, and the need for energy complex stability and production (Biden is basically asking for it).

So the less obvious was data released this evening from the EIA. They are forecasting that US oil production increases quarter on quarter right through to the end of 2023 and for US crude production to exceed 2019 levels in 2023. In 2021 the lower 48 states saw production falls and the gulf of mexico saw production increases, but the net effect of both was -0.12mmbls. Into 2022, they expect a flip to +0.64mmbls.

I think all of this is supportive of the demand setup that HTG has in 2022 and I think there's real potential for existing broker estimates (on revenues and profits) to be significantly beaten if the current supportive outlook holds. They've already seen that start to come through in the backlog (in the last trading update).

As the Telegraph Questor article points out and as we have discussed here already, when you're at a fraction of tangible NAV, I think only the second derivative has to change for the stock to work extremely well and to really start to close the gap to TNAV. That has maybe already started. Perhaps the stock will need a little bit of time in the very short term to chop around a bit and hopefully form 200p as a new base.

Eric

[hollow88] 11/1/2022 16:41

walked through 200 today so perhaps looking at 220? before significant tranche of profit-taking, ready for next step up. Telegraph article no doubt helping.

[philanderer] 11/1/2022 14:03

Questor: it sells to oil firms and is losing money – but Hunting could prove a worthy find

Questor share tips: a discount to the value of its assets and a 3.5pc yield will appeal to brave contrarians

Questor says: buy

Ticker: HTG

Share price at close: 191.8p

[stemis] 04/1/2022 11:52

Bought Titan for $775m, current market cap $379m. I suppose you can read that either way. Bought at 24 x operating profit and 4.9 x revenue !

[aublune] 02/1/2022 15:33

Titan by itself is worth much more than the market cap of the entire company IMV. When did they buy Titan?

[stemis] 31/12/2021 17:39

Slightly odd transaction/disclosure. According to the accounts at 31 December 2020, Hunting Energy Services (HES) had inventory of $48.7m and an intercompany loan with Hunting of $25.7m. Net assets were $26.9m. However all those figures are 12 months out of date.

Since Huntings overall trading hasn't improved since 2020 perhaps it's reasonable to assume that HES incurred a similar loss to 2020, reducing NAV to ~$19m? The NAV if the 40% Hunting are buying would be ~$8m. Stock of $48.7m is significantly higher than the stock used during the year, which was $22.1m, so I'm guessing there's an element of stock that's surplus and that's what they've sold - maybe $36m worth?

[pireric] 31/12/2021 11:54

Interesting news, and just deciphering it.

Restructuring of the European OCTG business. Hunting's 60% subsidiary is buying out its minority partners (Marubeni-Itochu Steel/Tubulars).

As part of the deal, the minority partners are also buying OCTG inventory that the JV currently holds.

The net net of the two is that Hunting will receive a net cash inflow of $27.7m and gain access to the remaining 40% of the OCTG business (in 2020 delivered revenues of $35.3m, loss before tax of $8.5m and gross assets of $60.7m). I imagine the components are that HTG is perhaps paying somewhere around $10m for the stake, and then MI is acquiring $40m odd of unsold inventory, which together gets to the net $28m or so.

"The transaction provides Hunting and MI the opportunity to focus on their respective core competencies of providing world-leading threading, manufacturing and in-field support and OCTG supply and trading."

Looks a good enough deal for Hunting at face value.

"The restructuring of our European OCTG businesses has generated a $27.7m net cash inflow and has released significant capital for the Group to deploy into new business opportunities. Our operations in Aberdeen and Velsen-Noord will continue to support clients operating in the North Sea and Europe and we look forward to continuing our close relationship with MI."

[jw330] 31/12/2021 11:51

encouraging rns for the end of the year. 2022 could be a good year for hunting. Just waiting for a technical breakout here for a true rally in the share price.