west atlas spill - nms to the rescue?, page-24

DSS, you said:
whats disturbing about knowing the facts. Nepsys is not a proven welding proceedure yet. They have long way to go. This is what I am trying to point out. The rest of the operation is small time compared to other multinational players in the market. there is a long road ahead for this stock. I am amazed at the share price and cannot see it moving anywhere fast unless there is success on the North Sea job for the CNR brace repair job. As I have stated talk to management as much as you can. I am not here for a fight only constructive interaction"

I have sat on the sidelines of this thread until now, and like you, I am not here for a fight either. Differing views are valuable to a thread like this if they are presented properly.

I am not here to get involved in the technicalities of Nepsys, and clearly you know a lot more about the industry than I, as afterall I am just a small time investor who thinks that Neptune has the potential in time to become a substantial player in the market.

My question to you is, why are you amazed at the share price? What do you think is fair value at the moment? Neptune is still trading very cheaply compared to MRM. Okay you can't compare the services that they offer, but they are both in the field of oil and gas services, and Neptune stands to at least match, if not beat, MRM's result this year, yet their market cap as of close yesterday was only 60% of MRM's.

I accept there is a greater risk factor built into the NMS share price because of the "growth by acquisition" strategy, but they are still trading on a PE of only about 10 based on this years forecasts.

NEPSYS, while potentially a great asset, is not nearly as important as it used to be for the overall result of the company. If anything it is a really good tool the company can use to market itself to win bigger contracts for the future. I will be interested to see what percentage of revenue comes from NEPSYS this financial year.

If you have the time, your thoughts would be welcome.