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Author: manzanilla Big funky green star, 20000 posts Top Favorite Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 91932  
Subject: LAM - Lamprell dire trading update Date: 16/05/2012 08:15
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I looked at prices this morning and guessed that I had missed a share split - but no :(

http://www.investegate.co.uk/Article.aspx?id=201205160700184...

During the year to date the Group's financial performance has been adversely affected mainly by progressive delays in key specialised vendor equipment deliveries for new build jackup projects together with the progressive slippage in the timing of expected new project awards and delayed client deliverables. The delayed equipment deliveries are representative of the current tightening in the worldwide supply chain for specialised jackup rig components which is expected to ease during 2013 when new capacity comes onstream. This has caused a delay in revenue generation and led to the significant underutilisation of resources including personnel. Following the rescheduling of construction work it is anticipated that the final delivery dates of the projects affected by delayed equipment deliveries will remain on track.

In addition, we have recognised further costs linked to the final specialised equipment commissioning on, and the delivery of, the wind farm installation vessel projects Windcarrier Brave Tern and Seajacks Zaratan both of which are scheduled for delivery in the second quarter.

It is anticipated that the delay in revenue generation together with the additional costs will result in the Group incurring a small loss in the first half of the year with a recovery expected in the second half of the year.


Anyone think this is a buying opportunity bigger than all the other ones on offer today?

manzanilla
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Author: manzanilla Big funky green star, 20000 posts Top Favorite Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 78853 of 91932
Subject: Re: LAM - Lamprell dire trading update Date: 16/05/2012 08:21
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oh dear - one director sold 200,000 shares and another sold 250,000 shares a couple of weeks ago. Surely they can't have known anything the market didn't? Surely LAM didn't know things were going wrong when it put out that very upbeat new contract RNS at the start of May?

http://www.investegate.co.uk/Index.aspx?searchtype=3&wor...

manzanilla

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Author: MrContrarian Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 78859 of 91932
Subject: Re: LAM - Lamprell dire trading update Date: 16/05/2012 10:23
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If the directors are right and 2013 will be fine then it's cheap.

But how can I trust a board whose RNSs go from feast to famine since 1 May. They can't even see ahead two weeks, never mind 52 weeks.

Waiting for news of a recovery is the way I'd play it, if at all.

MrC

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Author: djpreston Big gold star, 5000 posts Top Favorite Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 78863 of 91932
Subject: Re: LAM - Lamprell dire trading update Date: 16/05/2012 10:52
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A case of "fool me once, shame on you. Fool me twice, shame on me."?

Management credibility is shot.

Contacts? Fine.

Where is the delivery of profits and cash?

Let's not mention the well timed sales, eh?

Best option is surely a sale to someone looking for a well positioned base of operations our at least a wholesale boardroom clear out

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Author: djpreston Big gold star, 5000 posts Top Favorite Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 78864 of 91932
Subject: Re: LAM - Lamprell dire trading update Date: 16/05/2012 10:54
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PS not a holder, for sake of clarity.

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Author: MrContrarian Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 78869 of 91932
Subject: Re: LAM - Lamprell dire trading update Date: 16/05/2012 11:41
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New f/c via FT Markets Live

[Merrill Lynch] There are two strands to the downgrade. First, we have made marginal changes to revenue expectations, based on the changing phasing of the projects. Second, we have significantly reduced profitability levels. This leads us to downgrade estimates in 2012e by 70%, 13e by 54% and 14e by 50%. Subsequently we pull down the multiple we apply to earnings, to 10x PE, and 5x EV/EBITDA, and increase our WACC in our DCF to 10.5%. This combination leads us to lower our PO to 180p, and our rating on Lamprell moves to Underperform.

[JP Morgan] We reduce 2012e EPS 68% to 13.9c [8.7p] (70% below Bloomberg consensus at 45.7c) and 2013e EPS by 40% to 33.0c [20.8p] (42% below).


Hemscott don't have the Merrill Lynch or JP Morgan forecasts.
http://timesonline.hemscott.com/servlet/HsPublic?context=tim...

MrC

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Author: Shanklin100 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 78874 of 91932
Subject: Re: LAM - Lamprell dire trading update Date: 16/05/2012 13:43
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Darron

Best option is surely a sale to someone looking for a well positioned base of operations our at least a wholesale boardroom clear out

Personally, I think they should just jail all the directors.

As per manzanilla's earlier post, IMHO the sequence of events here, over the last 5 RNSes, is just completely unacceptable.

- big contract win
- big contract win leading to a share price over £3.60
- PDMR sale
- PDMR sale
- humungous profits warning

It is very difficult to believe that these problems weren't known at the time of the PDMR sales, if not well before that, meaning that there was quite possibly a false market in LAM's shares.

Unfortunately I was holding. Should I invoice the two beneficiaries of the PDMR sales for my losses? No doubt the FSA will prove itself completely toothless once again.

Martin

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Author: investorschamp One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 78880 of 91932
Subject: Re: LAM - Lamprell dire trading update Date: 16/05/2012 17:46
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I agree, that management credibility is shot to pieces.
It can only get worse as FSA investigate, which is sure to be the case in the current environment and it's quite a simple one to investigate.
Having pocketed over £1m the insiders have the money to pay the resulting fine - assuming this isn't imposed on the company, as is also likely!

The actual announcement implies that company was aware of problems for sometime

What other skeletons are there?

Simplicity of Merrill's re-assessment is naive in the extreme.

CB


PS I am a holder!!

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Author: OldJock One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 78881 of 91932
Subject: Re: LAM - Lamprell dire trading update Date: 16/05/2012 22:32
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Oh dear! What a mess...

One can only hope that the 'toothless' FSA develops some serious fangs... it's about time they actually used the whole array of weapons in their armoury instead of talking about how they need more weapons.

What are the chances of jail time for either of these PDMRs?

Old Jock (no position)


PS One has to wonder if there isn't more bad news to come... or whether instead this presents a good buying opportunity?

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Author: partlypaid Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 78889 of 91932
Subject: Re: LAM - Lamprell dire trading update Date: 17/05/2012 09:24
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Compare the report:

adversely affected mainly by progressive delays in key specialised vendor equipment deliveries for new build jackup projects together with the progressive slippage in the timing of expected new project awards and delayed client deliverables. The delayed equipment deliveries are representative of the current tightening in the worldwide supply chain for specialised jackup rig components which is expected to ease during 2013 when new capacity comes onstream. This has caused a delay in revenue generation and led to the significant underutilisation of resources including personnel.

with one of the directors who sold recently:

Kevin Isles (aged 51) joined Lamprell in 1997. Before this, he worked globally with J Ray McDermott for 12 years, holding various positions relevant to fabrication, installation and commissioning of fixed offshore platforms. Kevin has overall responsibility for the day-to-day management of the Sharjah Facility and manages the execution of all the projects undertaken there.
http://www.lamprell.com/about-us/senior-management.aspx

'nuff said

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Author: ManSiarad Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 78892 of 91932
Subject: Re: LAM - Lamprell dire trading update Date: 17/05/2012 10:11
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Martin,

As per manzanilla's earlier post, IMHO the sequence of events here, over the last 5 RNSes, is just completely unacceptable.

Agreed.

Unfortunately I was holding

Me too - I had wondered why the shares had slipped back a bit after the peak, for no apparent reason, but put that down to the general market malaise.

With the company being managed out of the UAE, not much that could be done with regards to the directors, I suspect - even if the FSA were suddenly to grow some teeth.

For any big player looking to get into the construction business (not just oil rigs, of course, but also the new line of wind turbine installation vessels), then, as Darron says, it might well provide a good opportunity.

It would seem somewhat unlikely that those company insiders who made the PDMR sales didn't have some inkling of the problems, to put it mildly. And some further explanation of the reasons for the delays in equipment delivery mentiooned as being the reason for the problem might be a good idea.

The Daily Telegraph's take on the story:
http://www.telegraph.co.uk/finance/newsbysector/energy/92704...

'The company operates a strict share dealing policy in line with all appropriate disclosure and regulatory frameworks, and both these sales fell within that in the normal and entirely proper way,” Mr McCue said. “Neither employee sits on the board nor were party to the material contained in today’s announcement.”

Mr Isles is Lamprell’s executive vice president of the group’s operations at Sharjah and Hamriyah in the United Arab Emirates and Mr Doak is the company’s integration and development director.


Are we really expected to believe McCue's statement “Neither employee ...were party to the material contained in today’s announcement” when Isles, at least, is executive vice president, operations, for the two yards where the delays actually took place ?

I have rarely read a statement that is so easy to disbelieve.

Not that I would dream of accusing Mr. McCue of deliberately telling an untruth, of course !

Man Siarad











.

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Author: JapanStocksMan Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 79261 of 91932
Subject: Re: LAM - Lamprell dire trading update Date: 05/06/2012 04:39
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Sure, this smells like a fish left behind a cupboard for two weeks.

However, if you recall cases where stocks have plunged on dodgy insider buying or selling (Apple is probably the most famous), you know that the market forgets about this kind of thing fairly quickly, and then people start to focus on the value. Lamprell is worth much more than a quarter of a billion pounds.

Jan
http://www.smartjapanesestocks.com/

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