2006 the strategy began 2007 the pieces were coming together 2008 the synergies were becoming clear 2009 the results speak for themselves
2010 and beyond and that success is spelling doom. for me, not NMS. i have always envisaged NMS being the great long term investment, promising all manor of benefits in the years ahead, with a slow and subtle selldown once certain price targets are met. but i fear this great plan will never come to fruition. why ? because of that dreaded word a number of posters bring up. TAKEOVER. for those who invest short/medium term, a takeover or strong rumours of a takeover are often the great dream, as growth is accelerated when the premium is added to the SP. i personally have benefitted from several of these in the past, notably TAH, but also MAY (thru SYB & MYP) and FXJ. but NMS is my long term, let it meet its potential, great wealth creating investment. however its success in the last 2 years, and the benefits it would create for any suitor, now make me realise a takeover is a real possibility. the future of WA's LNG industry, and other worldwide O&G developments mean the giants of the O&G services industry are likely to start sniffing around looking for a quick, clean, neat entry into the australian market to be part of a huge future in LNG. and neptunes diverse set of businesses and services are the perfect entry point for many, primed for a huge cash injection to cater to the industry's needs. the determination of management to maintain control of NMS for these great years has been discussed many times, but in the end the potential of the LNG market in WA will likely mean those giants will throw their cash at management, along with other incentives, to sway their thinking and take control away, along with my long term plan. sure the reward is likely to be very nice, but how soon would that SP have been reached anyway - 12 months, 24 months ?? while the acknowledged barriers to entry give neptune a distinct edge in the WA market, it ultimately will likely lead to the TAKEOVER i fear.
thoughts ???
NMS Price at posting:
31.0¢ Sentiment: Buy Disclosure: Held
