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FYI here's extracts from today's Finncap's note, with a 40p target price. I suspect Finncap's forecasts for this year of $10m revenue and 1.7c EPS - i.e 1.42p EPS - are rather conservative, especially given the $5m of revenues in the last H2.
Which is a good thing imo. Not only is there therefore a good chance of beating forecasts, but the market doesn't get overexcited and I can continue topping up in the meantime :o)):
"FY22 results show a strong recovery and growth in revenue, assisted by North American market recovery and additional revenue from recent third-party component distribution agreements. The change in sales mix had some effect on gross margin, while incremental overhead cost reductions helped reduce pre-tax loss to $0.5m. SABER development is progressing well, with key tests surpassed, and remains on track for commercialisation in 2022. No change to forecasts, with market recovery supporting the near-term prospect and initial SABER revenues expected to commence in FY23. We maintain our 40p price target based on the exciting and substantial market opportunity offered by the introduction of SABER, its unique rotary steerable system."
"- Forecasts. No change to adj PBT forecast of £1.2m, with a lower GP margin of 55% offset by lower overhead costs. Our forecast year-end cash remains £3.0m.
- Valuation. We maintain our existing 40p price target. The company is progressively de-risking and expanding operating parameters for SABER and is on track for commercialisation before the end of 2022. SABER is a unique and disruptive product with a huge market opportunity. Early indications are of strong interest from potential customers. As SABER starts to demonstrate its market potential, we see significant scope for the shares to revalue."
Good results for the year to 31st March.
H2 revenues were $5m, up from $2.3m in H1 - leading to a $0.9m EBITDA in H2 alone and an H2 $0.4m PAT.
That's an annualised $1.8m EBITDA with no improvement at all this year.
NTQ still has a £4m cash pile against the £10m m/cap.
SABER development is going smoothly, and its prospects are potentially gamechanging in not only oil, but also geothermal and methane capture.
There are new customers internationally and in the USA.
With the rig count climbing almost every week - and very nicely since the year end - I would expect those H2 figures to continue to improve.
Hi Gold....we already know what the prelims will show on 6th July from the trading statement, i.e a return to profitable $0.3m EBITDA and $7.2m revenues, ahead of prior expectations, following a vastly improved H2. That would reflect an excellent $0.9m positive EBITDA in the last H2.
The significance will come in the outlook, as this H1 should continue to show considerable improvement, and in commentary on commercialisation of the gamechanging SABER technology.
Good to see the trading volume here today Hoping it’s a Prélude to a good set of full year Results That are Due soon.
The US rig count surged upwards by 13 last week to 753:
Https://www.naturalgasintel.com/surge-in-oil-patch-lifts-u-s-drilling-tally-by-double-digits-in-latest-baker-count/
Enocuraging to see all the gains coming from land-based drilling, with the Permian Basin leading the way.
The US weekly rig count continues to climb - up another 7 to 740 now:
Https://seekingalpha.com/news/3849676-us-rig-count-continues-upward-climb-adding-7-in-baker-hughes-survey
Also, a good post elsewhere from 1gw as follows:
"The FT had an article at the weekend on capital discipline holding back US shale oil production growth. Within the article was a statement that what growth there had been in the drilling rig count was largely attributed to "smaller private operators, which do not face the same shareholder pressure as their larger public counterparts."
That should be good for Enteq as I think their customers (smaller "independent" service companies) are probably disproportionately (relative to the major service companies) serving these smaller operators.
"US oil producers ignore Biden’s rallying call to drill"
hTtps://www.ft.com/content/2d92c841-0a66-464a-9762-02994ac41f7d
The US rig count jumped up by 6 last week to 733:
Https://www.teletrader.com/oil-rig-count-in-us-up-by-6-to-580-baker-hughes/news/details/58041453
Interesting too to see that in Canada the number of rigs jumped by a whopping 28 to 151.
Good to see the buying price increase now to 15.2p.
Perhaps our seller is finally running out of stock - almost 500,000 shares have been bought yesterday and today alone in this normally quiet stock re volumes.
I topped up again last week.
The outlook in the prelims should be extremely rosy given the oil price and the rig count increase - and the CEO's bought almost 285,000 shares in the last couple of months.
Plus any news on SABER could be gamechanging.
Last week's rig count was overall down one, falling for the first time in 31 weeks - though the onshore count was actually up one, with only the offshore count down by two.
Also interesting to see the Canadian rig count jumping by 15 in the week to 103, up from 62 last year:
Https://www.ogj.com/drilling-production/article/14277341/canadian-drilling-jumps-as-us-count-dips-slightly
The rig count increase is accelerating - it was up by 14 last week to 728, the highest since the pandemic began and up 60% year on year:
Https://www.washingtonexaminer.com/policy/us-oil-rig-count-up-60-on-year-to-highest-since-pandemic-struck-as-prices-soar
The US rig count rose another 9 last week, up to 714 now:
Https://oilprice.com/Energy/Energy-General/US-Rig-Count-Continues-To-Rise-As-WTI-Hits-110.html
The US rig count now at 705, up 7 in the week:
Https://rigcount.bakerhughes.com/
The US rig count rose once again last week, by another three rigs to 698:
Https://www.houstonchronicle.com/business/energy/article/U-S-rig-count-continued-its-climb-this-week-as-17136907.php
"Still, with crude prices again above $100 and global demand soaring, the stars are aligning for a production surge in the Permian Basin of Texas, foreshadowed by what analysts say is an “all-time high” number of drilling permits."
This week's US rig count shows it continuing to inch higher, by another two to 695 - the highest since April '20.
Https://oilprice.com/Energy/Energy-General/US-Rig-Count-Inches-Higher-As-Oil-Rally-Halts.html
"Drilling has picked up substantially since the Russia invasion, adding 45 rigs in the last eight weeks."
There's also further positive industry news, with Schlumberger profit and revenue beating expectations. They comment
“As demand continues to strengthen [...], the duration and scale of this upcycle may potentially prove higher than originally anticipated""
Good coverage of the recent director buying:
Https://www.thearmchairtrader.com/enteq-technologies-quartix-technologies-glaxosmithkline/
"Enteq Technologies (AIM: NTQ) CEO Andrew Law bought 142,000 of shares in the company at 14.75p each, paying £20,945. The acquisition gives Law a holding of 1,219,403 shares, representing 1.8% of its issued capital. On 3 March he bought 142,850 shares, the second tranche so far this year, and he has been a consistent buyer of company shares over the past couple of years. Enteq, an energy services technology supplier, on 31 March announced its 2021 earnings were in line with expectations, with revenues above expectations. Enteq is also benefiting from the increase in the benchmark WTI oil price per barrel, from $63 in April 2021 to $92 in March 2022."
Now 843,000 shares traded today - all Buys. And the Buy price has now moved up to 15p.....
All the 252,000 shares traded already today have been buys, including three 50k's and two 40k's. Hopefully the dam here is about to burst.
The US rig count continues to rise, now at 689 and up from 673:
Https://rigcount.bakerhughes.com/
The CEO's been buying again - this time another £21,000's worth of shares at 14.75p:
Https://uk.advfn.com/stock-market/london/enteq-technologies-NTQ/share-news/Enteq-Technologies-PLC-Director-PDMR-Shareholding/87833960
Following the positive trading statement, the prelims aren't until 6th July. So the CEI iether reacting to one or both of the improving oil & gas environment and the likelihood of further SABER news flow soon.
42,187 shares just reported bought at 16p - a full 1p above the 15p offer price. Very keen.
...and this week's total US rig count continues to trend upward, up another 3 to 673 rigs, up in 9 of the last 10 weeks and up from 430 a year ago:
Https://finance.yahoo.com/news/permian-oil-rig-count-increases-124212815.html
Finncap reiterate their 40p target price here.
They also keep their 1.8c EPS forecast this year, which of course excludes any value for SABER.
Plus they forecast a $3m cash pile at March'23, so plenty of spare cash in hand.