Wellstream Share Discussion Threads

[simon gordon] 20/11/2009 12:16

Whatsaprofit,

Thank you for your very informative post.

Good fortune.

[wsm812] 20/11/2009 12:08

If this breaks 475 then its hello again to 450p. I am tempted to return at that level, could even be today at this rate!

[mr.oz] 18/11/2009 17:52

interesting , whatsa ... hope things turn around mate

[whatsaprofit] 18/11/2009 16:36

mr.oz we were told yesterday that the reason the numbers are so high was that we have little to no work on at the newcastle plant.In the new year there is only an order for an iranian company and even that is being finished off at the brazil plant to save on tax( i would imagine the iranians will tax us a hell of alot more than the brazillians).We were told that they cannot see any decent new orders coming in until at least the second half of the year(2010) and even then Ally Mcdonald seem unconvincing when he said he thought it would be after october.After reading the RNS yesterday i dont think the severity of the newcastle plants prediciment was really pushed out.I dont know if this is reflected in the share price or not at the minute but when i am laid off on Feb 17th( as i am certain i will be) i think i will take the money i saved in company share save scheme back out as cash and not shares.
Wellstream keep losing orders to Technip as they sell the whole package i.e deployment ,pipes and umbillicals and can undercut wellstream as was the case in an order recentley for a project called Benita that we were told was 99% in the bag but lost out to technip at the last minute.We have been told that pipe that was being sold for £1000 a metre is now being offered for £450 a metre and wellstream still cannot get any takers.

[pharmadude] 18/11/2009 13:31

molatov, are you saying WSM should start selling spades ?

[mr.oz] 17/11/2009 21:48

Would be interested in "whatsaprofit's" view today

[molatovkid] 17/11/2009 21:38

just remember in the Californian goldrush it wasnt the miners who made the money, it was those who sold the spades.....

[matchstik] 17/11/2009 13:11

From chroniclelive.co.uk.............

Oil and gas industry supplier Wellstream has revealed an uncertain future will see it make around a third of its workforce redundant following a 90 day consultation.

Wellstream, which last year signed a £600m long-term arrangement with Brazilian oil company, says it has difficultly identifying enough new work coming in 2010 to justify keeping its full workforce.

The Walker-based company, which cut around 50 jobs earlier this year, expects around 199 jobs to go as it prepares for difficult market conditions outside its Brazilian operations.

Wellstream is one if the world's leading manufacturers of pipes for recovering oil and gas from underwater reserves. In recent years it has enjoyed rapid growth and was floated on the stock market two years ago.

Today Alasdair MacDonald, acting CEO, said: "This was a very difficult decision for us and I greatly regret the impact it will have on our Newcastle employees and the local community.

"While it is unsettling for everyone involved, these measures are absolutely crucial to remain competitive and secure the long term future of the business.

"We expect the challenging market conditions to prevail well into 2010 but remain well placed to benefit once conditions improve".

A statement released by the company today revealed they expected earnings for the second half of 2009 to be slightly better than the first six months.

But, despite global success, the company says it faces an uncertain future in the first half of 2010.

A task group is already being set up to help find work for the skilled engineers likely to lose their job.

Newcastle Council is one of the public sector groups stepping in to help the workforce.

Council leader John Shipley, said: "I am very disappointed by the news of around 180 job losses at Wellstream. We will offer all the support we can to members of staff affected.

"We are pleased that Wellstream remains committed to staying in Newcastle, where the company will continue to employ 400 people.

"We are confident that new opportunities will arise from our expertise in marine and offshore engineering, and through the emerging offshore wind industry.

"The proposed taskforce will help mitigate the impact of this announcement and we will be providing the support of Newcastle Futures."

Development agency One North East says it has been reassured that the company remains committed to Newcastle.

Ian Williams, One North East director of business and industry, said: "This is disappointing news and the public sector will be concentrating its support on helping staff affected by redundancy.

"We have spoken with management to learn more about its plans for the Tyneside site and they have reiterated that the company remains firmly committed to the future of the Newcastle plant which - like many manufacturers - has been hit by difficult global market conditions."

[mallorca 90] 17/11/2009 12:36

WSM picking up nicely after initial sharp drop. May even end the day breakeven.

[simon gordon] 17/11/2009 12:33

Cazenove have downgraded eps for 2010 from 36.6p to 26.9p. It looks like take over hope is the only thing keeping the share this high.

*Sourced from Markets Live on Alphaville.

[redips2] 17/11/2009 12:15

no-- but its on my watch list--afn is the one for me, they are a long term money maker, i turned sey for quick 12%, but as i say i buy to hold

[mallorca 90] 17/11/2009 12:06

red
do you have gkp?

[redips2] 17/11/2009 12:05

i buy and hold, they look cheapish to me,i don,t have enough to worry about only £3k-- its just a punt-- i hold quite a few in afr, lam, and fxpo plus 22 others ---all have served me well so far

[mallorca 90] 17/11/2009 11:53

Cecky
You used to be very bullish on WSM about six months ago and were talking up a price in excess of £5

[ceckyspunt] 17/11/2009 11:51

the fact is that last year the wellstream share price was decimated as the new reality of global recession sunk in, and we have recovered strongly from those lows, but the backlog is looking rather thin now compared to last year, so WSM need to announce some significant orders soon.

yet still the lows are higher and the highs are higher too... at least up until now... but at £5 i would day there is no value in putting more cash into this at least not until we have confirmation of a brighter outlook.

i suspect that the new land in brazil will be used to increase capacity or storage facility, and therefore it is fair to assume that the WSM management are confident of future growth in that geographical location, but perhaps not globally!

this is a HOLD or REDUCE but not a BUY or ADD IMHO.

[mallorca 90] 17/11/2009 11:47

Red

Its picking up

[redips2] 17/11/2009 11:41

phil--do you mean me?

[phillis] 17/11/2009 11:34

first half 10 earnings "to be impacted"
i.e expected to be lower still
What don't you understand?

[redips2] 17/11/2009 11:23

if they do drop to 4.50, mall i will top up again--the word is top, not fill my boots--anyway buffet never can call the bottom, if i get near that will do me as well!

[mallorca 90] 17/11/2009 10:07

Will recover after a further fall

[mallorca 90] 17/11/2009 09:41

Red
Why top up at £5 when you will soon be able to top up at £4.50 or less very shortly

[redips2] 17/11/2009 08:18

just topped up with a few more under £5