Titan Energy Services (TTN)

[FarmerGeorge]

Honestly I don't think it would be hugely difficult to "set up and transport such a package of suitable containerised accommodation and catering services in remote areas" - but I have been, and am being, proven wrong on that one each reporting date. I hope to continue to be shown up as wrong!

[DarkHorse]

Mmm, interesting one. Certainly - not 'hugely difficult' on one level and I'd keep a careful eye on competitive pressures and margins; nevertheless they've got a great track record versus existing competitors, and in their niche markets they have developed networks, expertise, economies of scale, synergies and cross-selling opportunities through complementary services which I don't think could be replicated overnight - would you agree?

[Toulouse - Luzern]

Huge drop today minus 71.8% on updates on contract position and profit guidance.

[NZSilver]

heavy! looked at this but never bought (however hold HDX in mining services arena), oversold?

[stoploss]

Think Pie funds been in this one ....wonder if they are still in ......

[DarkHorse]

Ouch even for a very small holder! You were so right Farmer George - lesson learned. They sure saved up a lot of bad news for one announcement - I've never had a holding fall nearly so far in a day before. Can anyone hazard a guess at likely EPS based on the updated guidance of 10-12m EBIT?

[noodles]

Ouch even for a very small holder! You were so right Farmer George - lesson learned. They sure saved up a lot of bad news for one announcement - I've never had a holding fall nearly so far in a day before. Can anyone hazard a guess at likely EPS based on the updated guidance of 10-12m EBIT?

I calculate 15c on EBIT of $11mill

[noodles]

Did any body read the fine print (6pixel print)
"Excludes potential expenditure in relation to the realisation of the contingent liability relating to the retention payment to key personnel of up to $1.9m remaining under the Hofco acquisition agreement, which is subject to conditions being met. If realised this would reduce targeted EBIT by up
to $1.9m."

So EBIT is going to be lower than $10-12nill

[DarkHorse]

Thanks for that Noodles, and yes I did notice the fine print. I see fat prophets think the market has overreacted due to the negative sentiment in the sector. They have a point - although the announcement highlights a shared vulnerability inherent in any type of mining services, ie uncertainty of ongoing revenues coupled with high fixed costs.