Hunting Share Discussion Threads

[valuehurts] 13/9/2023 17:51

Capital markets day and management expectations obviously having an effect today. Nice to see

[charlotte2020] 13/9/2023 14:31

Be nice to see 50 day mva cross above the 200 day

[gswredland] 13/9/2023 12:54

looks like this is breaking out now

[dope007] 01/9/2023 15:23

Looking healthier with a reasonable rebound post results

[valuehurts] 28/8/2023 02:03

New copy of the Hunting Review has been published up on the site. New London office, explanation of the titanium stress joints and lots of internal staff stuff. Quite interesting...

[redwing1] 25/8/2023 19:42

Rogen43 - volume yesterday 1.24m shares vs 0.38m or less on each of the previous four trading days looks like 'reasonable volume' to me, However if you need the reassurance of a whole flock of sheep saying the same bullish things then I shall leave you to it, but that is not a 'discussion' in my book.

[valuehurts] 25/8/2023 12:41

So now all analyst bar 1 are Buy rated. Median target is 388.30. Investec is 442, lowest is Berenberg at 345. The one analyst not buy rated is overweight with target of 417. I can't see the firm.

[rogen83] 24/8/2023 22:09

It’s not falling on reasonable volume. Remove yourself from this discussion

[valuehurts] 24/8/2023 20:35

Jim mentioned the 9 analyst all now buy rated with target of 4. Will have to check on FactSet tomorrow.

[valuehurts] 24/8/2023 20:32

Very good presentation today... business is really starting to move now... would like to see management come in and pick up shares seeing as they believe they are such a bargain...

[tahmina1] 24/8/2023 18:12

nice day trade

[redwing1] 24/8/2023 14:46

Hunter154 - I don't recall saying that I didn't expect a working capital impact from a 30% rise in turnover. All I am saying is that a $136m cash outflow is not insignificant. I would also question the operating margins in this period - a 5% operating margin is pretty woeful and nothing like those achieved by the likes of Rotork and Spirax Sarco.

If Hunting is falling today on reasonable volume it will be because numbers have not impressed some institutional holders. The sellers may ultimately be proved wrong and I hope so because I still hold, but don't make the mistake of thinking you know better than the market.

[stupmy] 24/8/2023 13:57

Sorry, that was meant for the HBR board. I have a similar sentiment on HTG but haven't started to enter positions yet.

[stupmy] 24/8/2023 13:55

If it doesn't close above 235 today, then 221 looks pretty likely. For the moment I'm happy about this (my entries started today at around 236 from memory)and view it as an opportunity. When is Ex-divi date? The run up to that could have the price back on the front foot (before the fall on ex-divi)

[40kj] 24/8/2023 13:41

Previous prolonged falls were characterised by low volumes. This is a different drop and is a shaking out of weaker holders, so should recover nicely.

[hunter154] 24/8/2023 13:01

Very good way to look at it Salpara.

[salpara111] 24/8/2023 12:51

Well, on reflection I am back in at 232.
Sometimes when I get tied up in knots trying to analyse a situation I just ask myself a simple question.
"Is the business doing better than it was at this time last year" for me the answer is yes.
They released a trading update on the 25th August last year which saw the share price rise from 227 to 272.
They are more profitable than they were at this time last year and the forward divi is now close to 5% so all in all not expensive.
We never time our entry and exit perfectly but I would be surprised if we fall much further from here.

[40kj] 24/8/2023 12:51

I listened to the presentation and thought I heard insignificant write downs, listen yourself though, it should be online soon.

Seems simple to me. Wood Group results 2 days ago resulted in a jump in share price and short term investors read this across to HTG. Initial market opening there was no drop, but small later drop breeds bigger drop and exiting of positions now leads to the fall.

In summary this is a short term fall.

Analyst now have figures with which to work and so would expect some analyst pricings in next few days. Without checking I think the last pricings were £3.25-£3.5.

[hunter154] 24/8/2023 12:32

Elsa, if it is written down to nil already then the disposal will not have any further P&L impact……even though a fellow poster, who thinks they are a business expert seemed to suggest big writedowns.

[hunter154] 24/8/2023 12:30

Redwing, you seem “incapableR21;of understanding simple business principles.
Did you really think that turnover can go up 30% and it have zero short term working capital impact?

[elsa7878] 24/8/2023 12:10

18. Events After the Balance Sheet Date
In July 2023, the Group disposed of certain oil and gas exploration and development assets that had a net book amount of $nil (cost of $72.8m and accumulated depreciation and impairment of $72.8m) at 30 June 2023.

Definitely not getting $72.8 million.

Management sounded very confident going forward.

[stupmy] 24/8/2023 11:59

Thanks both, appreciated. I have a kind of helicopter understanding of these things and it helps me sometimes to pin it down a little more precisely. Relying or forward contracts is always a risk in my view, so having reduced wiggle room due to a low cash position is not ideal. Fingers crossed it will work for HTG I will only re-enter if the price drops to the 201 area and I think it will do that now.

[redwing1] 24/8/2023 11:54

Hi Stupmy. Yes, Dope007 is right. The negative cashflow is likely to be investment into contracts that get paid for later. Not a huge issue for Hunting as they are dealing with large multinational operators who are a good credit risk.

It is more than likely that the company's cash position will revert back to net cash by year end just as the company says it will. However, there is always some risk of contract disputes etc. Also, negative working capital (as this is) can be a restraint on growth if banks are not prepared to lend more to fund the company's expansion (but no suggestion of that here, I hasten to add).

[dope007] 24/8/2023 11:25

It is what they said. Cash upfront investment into contracts that get paid for later. also they have the sold assets not counted in the 6 month cash.

the trading statement flagged it up if you read back giving a FY cash position

[stupmy] 24/8/2023 11:21

So what does the cash position turning negative imply? That HTG have gone all in and now have significantly less room to manouvre should anything change with respect to their financial planning? Genuine question.