SEAMEC LTD - BUY

Companies belongs to the industries with cyclical nature provides lot of opportunities to patient investors for wealth creation. Understanding the top and bottom of cycles and fixing correct entry and exit points according to this top and bottom are the key of success in investing in  such companies. South East Asia Marine Engineering and Construction (SEAMEC) is a company  from offshore support services and its fortunes are closely related with the up and downs of Oil and Gas Industry. SEAMEC is a 75% subsidiary of French major 'TECHNIP' which is one of the leading companies providing support to energy sector and listed in Paris stock exchange. Company is operating multipurpose support vessels for diving, underwater construction and maintenance required by oil companies for their offshore operations .Currently company having four offshore vessels namely SEAMEC 1, SEAMEC 2, SEAMEC 3 and SEAMEC Princess  . SEAMEC is also a debt free company with reasonable cash reserves. As mentioned above, its performance is closely related with the oil and gas industry. In 2009 ,company posted a net profit of Rs.203 Cr but because of the stagnation in oil exploration activities due to lower  crude price, company could not deploy all of its vessels in 2010 and it posted a loss of Rs.33 Cr for the six month ended September. After a sluggish 2010,company is now receiving enquiries and the revival in oil price is expected to bring better business for the company in coming years . Technical and financial support from the world leader‘TECHNIP’  is a big advantage for SEAMEC. Investors with sufficient patience may considering a BUY at current level of Rs. 138/-