To paraphrase the latest Patersons report...
NMS "Underwater Performance" 12 month rating: SELL
Price Target: $0.37.
"We have downgraded our recommendation to SELL following a company earnings guidance downgrade."
Valuation expensive in short and medium term
"Based on our revised earnings forecasts, NMS is trading at 23.5 x FY10F EPS and 10.5x FY11F EPS. This is expensive in comparison to the broader 12-month forward Resource Services Sector median which currently trades at approximately 10.5x."
"Return to earnings growth hinges on integration"
This broker report was updated last week when the stock was trading at $0.51... personally I think it's a classic case of 'closing the gate after the horse has bolted'.
Patersons have an uncanny knack of doing just that.
It's a strong buy for me at these levels. I acknowledge that this stock is quite cyclical, and with currency playing less against us in the second half and the previously idle vessels back to work $9M plus for the full year looks very achievable.
To paraphrase the latest Patersons report...NMS "Underwater...
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