Neptune Marine Services (NMS)

[Bobbyvee]

Is anyone following this emerging oilfield maintenance company. They appear to be making a name for themselves in a niche market and are in strong growth mode. Refer article below from "Upstream Online"

Neptune in swim with Cal Dive job

By Upstream staff


Australian engineering services company Neptune Marine Services has landed a fourth repair project in the Gulf of Mexico, carrying out dry underwater welding for US contractor Cal Dive International.

The job is the third Neptune has signed with Cal Dive.

Neptune's managing director Christian Lange said the new project highlights the company’s penetration of the US offshore market.

"The Gulf of Mexico remains an important and lucrative market for Neptune,” Lange said.

“There are over 5000 fixed platforms and 78 offshore drilling rigs currently active in the region. This is potentially a huge repair and maintenance market and we have only just scratched the surface.”

Cheers
BobbyVee

[Arthur]

I have been in this for a while, after the cash issues my average price is about 15 cps. It is hard to believe now but they actually had trouble finding a broker to support the float. There seem to be a number of small non listed companies that are keen to be "taken over" by Neptune at cheap prices. If Neptune's forecasts are correct they are still on a relatively low foward PE. There seems to be no shortage of work in the expanded area, the main danger appears to be possible integration trouble. Disclosure - After such a good run I was overweight so I have recently sold about 1/4 of my shares.

[Bobbyvee]

This interview on Boardroom Radio is extremely informative and confirms the very positive growth outlook for Neptune.

http://www.brr.com.au/event2//92/23891

[Bobbyvee]

Christian Lange, Managing Director of Neptune since February 07, has a very impressive background in the industry through his role with the huge Schlumberger group. The following biodata confirms his experience in company turn around situations.

"Mr Lange was formerly Vice President for the global oilfield services group, Schlumberger Limited. In a 16 year career with Schlumberger, Mr Lange held a range of senior executive positions responsible for operations, capital markets, marketing, business strategy and general management.

In his most recent Vice President's position in New York and Paris with Schlumberger, Mr Lange was responsible for the group's key capital markets, merger and acquisitions advice and investor relations. He has also held senior management positions in operations, marketing and business strategy for the Middle East, North Africa and South America.

He is also a former Managing Director and Chief Executive Officer of the minerals based manufacturing and distribution company, SDS Corporation Limited, successfully executing that Company's restructuring and turnaround strategy."

[Bobbyvee]

There now appears very strong growth prospects for Neptune as indicated by the following extracts from the Chairman's address. After settling back to 80 cents in September there is now strong buyer interest and SP has risen to $1.18.

"Encouraging financial performance
The financial performance for the year represents anencouraging start for Neptune. Earnings before interest, tax depreciation and amortisation (EBITDA) was $1.5
million. This was after IFRS adjustments, $0.7 million in non recurring reconstucting costs, and $0.8 million of net research and development expenses. Revenue increased significantly to $15.5 million. A true measure of Neptune’s growth is best illustrated by the group’s fourth quarter performance. $12.6 million of revenue and EBITDA of $2.4 million was generated in this period, reflecting the early contributions of the new businesses acquired, as well as strong organic growth from the group’s patented NEPSYS technology."

"Acquisitions drive growth
The most significant achievement this year has been Neptune’s successful acquisition program which has transformed the group into a rapidly developing oil and gas engineering services business. In 12 months we have acquired five businesses – Allied Diving, Territory
Diving, Subsea Developments, Link Weld Engineering, US Underwater Services and – for a total consideration of $51.7 million. We also announced the completion of the acquisition of Tri-Surv Geomatics in August for $16.8 million plus an earn out. These are all strong businesses, and Neptune has been very fortunate to attract some excellent people with these businesses and we welcome them to the group. Most significant is the customers that have continued to support our businesses now that they are part of Neptune. We are fortunate to have the calibre of blue chip customers that we do, and Neptune’s future would not be possible without them. I thank them for their continued support. To acquire these businesses, the group has undertaken two capital raisings during the year, raising almost $52 million. As a result, many new retail and institutional investors have joined Neptune’s share register, and on behalf of the Board and the management team, we welcome their support."

"A favourable outlook
Based on the current structure of Neptune, in FY 2008 we expect to generate revenue of $60 million-$70 million, and earnings per share of 6-7 cents. This is based on the full 12 month contribution from five of our businesses and an 11 month contribution from Tri-Surv Geomatics. Neptune is still in the very early stages of its development and the Board remains supportive of management’s growth strategy. Neptune’s future prospects remain encouraging."

[Bobbyvee]

Anyone any knowledge of what trading holt just announced is all about? Merger, share placement??

[Bobbyvee]

Anyone any knowledge of what trading holt just announced is all about? Merger, share placement??

Probably announcement will relate to completion of due diligence and/or financing of Ross Deeptech acquisition

[Huang Chung]

I posted this yesterday on the peak oil thread, but since there is a thread for Neptune Marine, I might as well put it here as well.....

So far my participation in the oil and gas sector has been limited to building a stake in Neptune Marine Services (NMS), a service provider to the offshore and gas industry, focusing on sub-sea services, such as underwater welding (including the proprietry NEPSYS dry welding technology), and ROV submersibles. The sector is booming and forecasts are for continued strong growth.

The beauty of this investment is that they will make good coin no matter whether the oil price is $80 or $180.....and dry holes aren't an issue :).

Shareprice is just starting to recover from the high 30c level, but well off its pre-correction highs of around $1.30.

Well worth a look for exposure to the O&G sector, without the direct exposure to the O&G price.

http://www.neptunems.com/

[Huang Chung]

Thanks for the charts AA. NMS seemed to turn rather forcefully from the mid 30s earlier in the week....last couple of days looked very strong, and rightly or wrongly, I've taken that to be a turning point for the stock.

It will be interesting to see if it can hold these levels or even go a bit better....market headwinds are very strong though.

Cheers AA.

[Huang Chung]

Cheers AA....I'm quite happy with the fundamental picture, and the TA doesn't seem to be contradicting my feelings (but maybe it doesn't support them fully either).

I'll hold and hope for the best.

Longer term however, this stock looks to be an absolute (absolut?) no brainer.

[Huang Chung]

AA

NMS put on another 4c today (8.9%) while the broader market was down close to 1%. This follows a broadly positive article in today's Financial Review.

How does your chart look now...is there a buy signal yet?

Disc: Holding

PS Thanks for the update on IDL.

[Huang Chung]

Wow!

Thanks for that AA....a big effort.

First chart would make anyone who bought in at a dollar or more feel ill. :(

I bought at 47c, 39.5c and 40.5c, so as you might expect, feel pretty pleased at this stage.

If the down trend had kept going, the share price would have hit zero in no time at all!

[Huang Chung]

PS...thanks for the commentary as well.

[Huang Chung]

NMS needs to Break Resistance at 50c with Volume ...to be a buy

Just in my Opinion....

AA

NMS up another 4c (8.2%) to 53c on higher than normal volume AA. Was as high as 56.5c at one point.

I take it that you're now calling it a buy based on the technicals?

[Huang Chung]

NMS has been fairly lacklustre over the past day or two...I thought once it went through 50c it would push ahead strongly, before retracing.

Any opinions AA?

[Huang Chung]

Neptune Marine have secured funding for their second offshore support vessel, and it will be earning its keep immediately upon delivery.


Neptune expects to take delivery of the vessel during the second half of September from which time it will incur immediate financial return stemming from a charter (five months with an option to extend a further two) for an Australian geotechnical data services company valued at approximately $7.5 million.

http://www.stocknessmonster.com/news-item?S=NMS&E=ASX&N=418482

NMS seems like a good way of getting involved in the growing offshore oil and gas space, without being directly exposed to the risk of drilling.

[Bobbyvee]

It is over one year since I opened this thread. Still patiently waiting for some real movement. Their business development has been sound and growth encouraging, but I guess it takes time to really impact the market. At least there seems nothing to be concerned about thus far.

[Huang Chung]

Still hanging in there Bobby....thought you might have sold.

This stock came back a long, long, way, and I was lucky enought to buy in around what appears to have been the bottom. Moving up again, so I'm happy with my entry points.

Looks to have huge potential in a growing sector.

[shasta]

Still hanging in there Bobby....thought you might have sold.

This stock came back a long, long, way, and I was lucky enought to buy in around what appears to have been the bottom. Moving up again, so I'm happy with my entry points.

Looks to have huge potential in a growing sector.

NMS announces record profit (nice work HC ;)), market likes it!

http://www.stocknessmonster.com/news-item?S=NMS&E=ASX&N=418669

[Huang Chung]

Cheers Shasta, and thanks for posting the link above ;).

The outlook for this company looks quite impressive :).

[Huang Chung]

If Hurricane Gustav rips through the GOM oil fields, there should be mountains of work for NMS subsidiary US Underwater Services (USUS) inspecting and repairing offshore platforms and pipelines. USUS was acquired by NMS last year.

http://www.usunderwaterservices.com/

[Huang Chung]

If Hurricane Gustav rips through the GOM oil fields, there should be mountains of work for NMS subsidiary US Underwater Services (USUS) inspecting and repairing offshore platforms and pipelines. USUS was acquired by NMS last year.

http://www.usunderwaterservices.com/

I'd say NMS subsidiary US Underwater Services will be hard at it again. Certainly not as bad a Katrina, but the conditions must have been fairly nasty.

http://www.houmatoday.com/article/20080913/HURBLOG/809130287&title=Ike_sends_two_drilling_rigs_adrift_in_Gulf

[Footsie]

Stock appears to be forming the start of a new uptrend.

Higher lows.
Advancing on big volume days.
Needs to stay above 35c in the next few days to confirm this.

I'm watching this closely.

[Footsie]

Phaedrus

Check out the OBV in this stock....

V encouraging.

I bought in the mid 30's

[dragonz]

Stock appears to be forming the start of a new uptrend.

Higher lows.
Advancing on big volume days.
Needs to stay above 35c in the next few days to confirm this.

I'm watching this closely.

Good spotting Footsie. Funny how these OBV increases are usually followed by positive announcements :rolleyes:

http://www.asx.com.au/asxpdf/20090406/pdf/31gy4znt235j6s.pdf

[Footsie]

This stock seems to adhere to the Weekly charts more closely than the daily.

40c was the big resistance support on the weekly.

With it now comfortably above 40c i hold.

[Phaedrus]

The chart looks vaguely familiar, Footsie......
The usual indicators.
Firing in the usual order.
OBV first.
Trailing Stop last.

http://h1.ripway.com/78963/NMS46.gif

[Footsie]

Looks great doesn't it

these are the ones im looking out for

[impacman]

Looks great doesn't it

these are the ones im looking out for

Hi Footsie and Phaedrus. I have been looking at NMS and and like what I see from a fundy point of view. While any holding would be with a longer term view (ie not short term trading) I am interested in yours and/or Phaedrus' view of it at the moment from a TA perspective. It has risen sharply over the last week or so but am unsure whether TA signals indicate a continued strong uptrend or whether there are signals that indicate something else. The basic that I have picked up seem to indicate the former e.g. OBV still going up. Am slowly wading my way through charting for dummies but have really only started and would appreciate your views.

Thanks.

PS Footsie I enjoyed the Zurich Axioms

[macduffy]

Has anyone looked at NMS lately?

SP has been heavily marked down last few months but company announcement last week was upbeat, with a more profitable second half predicted, partly on the strength of more work in the undersea IRM ( inspection, repair and maintenance ) sector as a result of the GoM accident.

A director bought 200,000 shares a couple of days later at 20c.

Trend has been upwards since then so I've bought a few and may add if the new strength is confirmed.

[COLIN]

Has anyone looked at NMS lately?

SP has been heavily marked down last few months but company announcement last week was upbeat, with a more profitable second half predicted, partly on the strength of more work in the undersea IRM ( inspection, repair and maintenance ) sector as a result of the GoM accident.

A director bought 200,000 shares a couple of days later at 20c.

Trend has been upwards since then so I've bought a few and may add if the new strength is confirmed.

I've climbed on board, too, McD. The market update was most encouraging and it seems clear that the recent down-rating was quite over-done. And there was still intense buying interest at close.

[Dr_Who]

You are on to it mcduffy. :)

I also bought some today.

[macduffy]

It's tempting to add to my position here with the SP up another 10% today!

But the whole market's strong so there might be an element of over-reaction. I'll err on the side of caution and wait for further confirmation.

[macduffy]

NMS SP strong again today so I've added a few more.

That'll do me, for now.

[COLIN]

NMS SP strong again today so I've added a few more.

That'll do me, for now.

I'm glad a few more seem to have discovered this recovery stock. I've certainly got no complaint with today's 22% gain, at this point in time! Are you sure you couldn't be tempted a little further, MacD?

[Dr_Who]

I think this one can get to 40 cents before it sees resistance. Brilliant performance.

[macduffy]

I'm glad a few more seem to have discovered this recovery stock. I've certainly got no complaint with today's 22% gain, at this point in time! Are you sure you couldn't be tempted a little further, MacD?

It's certainly tempting but I've filled up a bit - for me - and we might see a bit of a pull-back after such a big run today.

So I'll sit.

[h2so4]

Nothing better than having your shares increase in price from the date of purchase.:t_up:

[macduffy]

Yes, nice to be right for a change.

I've been following NMS for over three years now and nearly bought several times. Now all I have to do is make sure I don't give back too much of the profit when the inevitable trend change occurs!

[Dr_Who]

You are a champ in this one mcduffy. It's put on over 50% in a week!

Disc: shareholder ;)

[macduffy]

You are a champ in this one mcduffy. It's put on over 50% in a week!

Disc: shareholder ;)

You are too kind.

Merely a case of diligent following over a long period of time but thanks anyway. NMS experiencing a bit of a pull-back today but so is the market generally. If it keeps it up though I may be forced to take some profit.

Memo to Dr Who. You need to clear some space in your Private Messages.

Cheers

[upside_umop]

You guys still in?

Would be good to keep watching this one I think. Haven't really looked too much into it but management seem upbeat...still?

[macduffy]

I'm still there.

Must admit though that the SP kept bumping down to my trailing stop last week. If that keeps up, I'll be exiting.

[Phaedrus]

This is an update of the chart shown in post #33 on page 3 of this thread. The same indicators are used, along with the same parameters. Green arrows mark the excellent entry signals and red arrows mark Sell signals. None of these 3 conservative indicators have yet triggered any subsequent Buy signals. NMS has been in a long-term downtrend for 10 months so far and has been in a short-term downtrend since 21/6/10.

Technically, this is an obviously Bearish chart - apart from one thing. Since 11/6/10 there have been some very high volume "up" days, giving a distinct "step" in the OBV (not shown). These are regarded as Bullish and it is entirely possible that the NMS bottom is already in.

http://i602.photobucket.com/albums/tt102/PhaedrusPB/NMS711.gif

[h2so4]

You mean I may have picked the bottom.:confused:

[Dr_Who]

Thanks for the chart P.

NMS is looking good.

[Dr_Who]

Broken throu the resistance and looking very good

[h2so4]

Broken throu the resistance and looking very good

Crikey mate this is all happening a bit too quick. No evidence of any increased earnings yet. I have only been holding for 3 weeks. Do we sell or hold?

To answer your footnote. A little bit of inflation never hurt anyone Doc.

[COLIN]

As I read the Momentum Index and the OBV now, I think we have convincingly bounced off the bottom as Phaedrus earlier suggested might be the case.

[impacman]

I have been in this one for a year now and bought with a LT view. It has been a bit of a heart stopper watching the plunge over the last 4 - 6 months but bottom appears to have been found. Cash reserves are solid and steady income supports the business. It will be the winning of some of the bigger tenders that are in the pipeline that will return this one to where it should be. Qatar contract news seems to be the one everyone is waiting for. Avg entry price of 42c so a little way to go yet for me. A lot less phased at the moment and I believe this one has very good LT business propects.

Cheers,

I-Man

[Phaedrus]

As I read the Momentum Index and the OBV now, I think we have convincingly bounced off the bottomIt sure looks like it - Buy signals have now been firing for 6 weeks. Note, though, that a slow, conservative indicator such as a Momentum(56) midline crossing is yet to come. Of course, NMS is not in an uptrend unless/until it Closes above 32.5 cents.
Note the classical "Price/volume climax" - these are often found at significant turning points.

http://i602.photobucket.com/albums/tt102/PhaedrusPB/NMS729.gif


I have been in this one for a year now and bought with a LT view. It has been a bit of a heart stopper watching the plunge over the last 4 - 6 months Avg entry price of 42c so a little way to go yet for me. IM, this is what happens when you have no exit strategy. You made an excellent buy decision and more than doubled your money - but gave all those profits (and more!) back to the market. Your position is now well underwater. NMS gave plenty of warning that it was weakening and multiple Sell signals were firing over a period of more than 2 months so there was plenty of time to make an orderly exit. You endured all that "heart-stopping" stress for nothing. By sitting back and passively watching the plunge you turned an excellent winning trade into a loser.

IM, I assume that you do not use TA at all. Can you see the advantage of having a clearly defined exit strategy in place? Even something as crude and simple as a trailing stop would have locked in most of your profits and spared you months of stress as you watched your money go down the drain.

[macduffy]

NMS gets a speeding ticket from the ASX.

Naturally, "the company is unaware......" etc.

I hold.

[COLIN]

NMS gets a speeding ticket from the ASX.

Naturally, "the company is unaware......" etc.

I hold.

And it was a "bare necessities" kind of response - brief and to the point. They didn't even offer a possible explanation, as others often do.

[macduffy]

NMS confirms profit guidance of EBIT between $5.5m and $6.5m.

Results to be announced on 26 August.

http://www.asx.com.au/asxpdf/20100802/pdf/31rp0zyt32pvlk.pdf

I hold.

[soulman]

Ouch!! Such a company. I might avoid buying any coy with debt now. I have already been doing that but this certainly re-affirm my action. As least they come back, unlike Pike River Coal.

[ronthepom]

[QUOTE=macduffy;313726]NMS confirms profit guidance of EBIT between $5.5m and $6.5m.

Results to be announced on 26 August.

http://www.asx.com.au/asxpdf/20100802/pdf/31rp0zyt32pvlk.pdf
Hi,

I see there has been no posts on NMS for a year now anyone still holding, thought they might be worth a punt at 2.5c

[Lego_Man]

Where good TA goes bad!

[macduffy]

Having got out of NMS with a loss but before the bigger part of the debacle, I won't be hurrying back in!

Yes, a good example of the value of paying attention to "bending trends".

[ronthepom]

[QUOTE=macduffy;313726]NMS confirms profit guidance of EBIT between $5.5m and $6.5m.

Results to be announced on 26 August.

http://www.asx.com.au/asxpdf/20100802/pdf/31rp0zyt32pvlk.pdf
Hi,

I see there has been no posts on NMS for a year now anyone still holding, thought they might be worth a punt at 2.5c

NMS up 36% this morning.

ps. i took a punt .!!

[airedale]

God shot,Ron, I should have taken your tip. But AZS look promising in Mexico.

[soulman]

NTA at 3.1 and an approach for a T/O. No price mention but got me interested. At a net cash position NMS looks promising.

[soulman]

Back in again this morning at 3.5. MTQ, a Singapore based coy has taken a big stake and nearing the 19.99 takeover threshold.

[soulman]

Love my work this morning when I sold for 3.9. I am set for a re-buy at 3.3.