IC Tip17 Dec 2014 12:15
Simon Thompson of Investors Chronicle today rates this as a BUY:
'Clearly, investors are worried that with the oil price under pressure then this will impact on demand for SeaEnergy’s services. However, this completely misses the point because if anything the need to keep costs down intensifies when the oil price is low and R2S offers a cost advantage to operators whereby they can monitor rig activity without making expensive offshore visits. Moreover, when SeaEnergy released its trading update early last month the company reported R2S had a strong order book for the rest of the year, and for the first half of 2015 too. The oil price had already fallen 29 per cent from its June high at that point, so if major oil operators were going to start deferring investment decisions then that process would have already begun.
SeaEnergy may be unloved, but there is no getting away from the fact the company’s equity is being seriously undervalued. And with upbeat full-year results expected to be released in the first quarter next year, I view the current depressed valuation as a buying opportunity.'