I disagree with you Heraclitus. Had a quick look at Clough's presentation. They achieve an EPS of 6.74 cents in FY 09 and are trading at over 90 cents. That implies a P/E multiple of almost 13.5x. Neptune is far more cheaply priced. By my calculation, after the dilution of the capital raise, its cors EPS going forward will be in a range of between 6.0 cents and 6.5 cents. So at a price of 67 cents, it is trading on a p/e multiple between 10x and 11x.
I believe that whats been driving Neptune's price is the enormouse publicity Gorgon and now the Pluto expansion has been receiving, which has raised the profile of the LNG sector, as well as the significant increases in the price of oil. The key for Neptune in my view is that they win contracts to support Gorgon, Pluto and other projects. If Christian Lange comes out and talks about Neptune being exceptionally well positioned to do this, then you will see a further rerating of the stock. I personally think it could trade upto 75 cents (another 12%) quite easily.
NMS Price at posting:
67.0¢ Sentiment: LT Buy Disclosure: Held
