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Lamprell LAM - Oh dear.

wanderer101
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Re: Lamprell LAM - Oh dear.

#103072

Postby wanderer101 » December 10th, 2017, 1:26 am

Some very interesting points made by Paul Scott (who is more of a small cap specialist than an oil-focussed investor, but holds LAM) over at Stockopedia here:
https://www.stockopedia.com/content/sma ... lh-247468/

this is a value share - with the valuation mainly underpinned by the balance sheet (large net cash balance), rather than the more usual multiple of earnings.

Lamprell has already warned on profits before

...

This is a pretty remarkable balance sheet, considering Lamprell only has a £216.6m market cap. Key figures;

NAV: $559.4m

NTAV: $526.6m

Working capital (net current assets): $389.1m

Long-term liabilities: $61.6m



His summary:
at the current valuation the business is in for free, with the entire share price backed by liquid assets. Therefore the downside should (in theory) be well protected, but the upside is in for nothing.


The share price has crept up a fraction since the above (Nov 30).
But it is still a potentially interesting recovery situation - or another candidate for sector consolidation after the Wood Group-AMFW deal and with the rumours circulating around Petrofac.

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