Just like many other mining services companies Neptune Marine Services (NMS) is a stock that has been hurt by hefty selling over the past few months and in particular since the beginning of May when the Rudd Federal Government first mentioned their hair brained super profits tax.
Last week we saw lows of 17.5c being reached but on Friday the company announced that their performance was on track and their guidance for the financial year of 2010 would be met following a strong second half. The company also mentioned that the BP oil spill in the Gulf Of Mexico would lead to increased Inspection Repair & Maintenance activity in the US.
The chart shows Friday's trading hitting a high of 25c and then a sell off back to 20c which can be attributed to nervous day traders who were unwilling to hold over the weekend. Today we saw the share price open at 21c and close at 24c for a gain of 20% for the day. Volume was strong on Friday and today we also saw strong volume as well which suggests a re-rating is on the way.
The chart also shows a gap at just below 60c which has not been filled so we could see a recovery to those levels.
This is a high risk opportunity but for those who are interested in taking on even more risk can consider looking at the NMSO options which closed today at 8c.
NMS Price at posting:
25.5¢ Sentiment: LT Buy Disclosure: Held
