Tuesday, January 4, 2011

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/-

15 comments :

  1. Hi,

    can you please post your views on varun shipping as well.

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  2. Varun is expected to be only a market performer

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  3. Hi,
    Could u pl give ur views on Kernex Micro.
    I recently saw a news report (http://www.telegraphindia.com/1101220/jsp/business/story_13323036.jsp).
    It appears that the time is ripe to pick up this unique stock.
    If all goes well this could turn out to be a multi bagger.
    Thanks

    ReplyDelete
  4. Hi,

    Could you please post your views on Piccadilly Agro Ind & BNK Capital Markets.

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  5. Concept stocks like Kernex are always high risk high profit ones.Company is waiting for orders in past many years. Hope ,this time chances are high.

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  6. Sorry not tracking Piccadilly and BNK

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  7. what is your opinion about anik industries

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  8. SHOULD WE BUY MORE TCPL AND SABTV PLZ GUIDE ME.

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  9. Valepick ji, what is your view on the Ludlow?

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  10. How is the results expected for the current quarter for the TCPL?

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  11. WHAT IS THE EXPECTED RETURNS FOR TIMKEN INDIA?

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  12. No change in the view of any of the above @ recommended or below price

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  13. sir, so much down. what to do?

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  14. The entire oil and related industry is under performing now , wait till it revive.

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  15. Sir, Seamec around 109 will it be good to enter at current situation any current update on it

    Hatim

    ReplyDelete

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