📈 2 stocks I'm watching

It’s been a busy week.

Shoe Zone got smashed, the Bank of England kept rates the same, and Trump won FT’s Person Of The Year.

And the markets are winding down for Christmas.

But there have been some stocks this week that have come onto my immediate radar.

Gulf Marine Services (GMS) being one of them.

Gulf Marine Services is a leading provider of self-propelled, self-elevating support vessels (SESVs) for the offshore energy sector.

It’s headquartered in Abu Dhabi (UAE) and operates a versatile fleet that supports oil, gas, and renewable energy industries worldwide.

These SESVs are specialised vessels capable of elevating themselves above the sea surface on extendable legs. And what these vessels do is provide stable platforms for various offshore activities, including:

• Well maintenance and intervention: Supporting the upkeep and enhancement of oil and gas wells.

• Offshore construction and installation: Assisting in the building and deployment of offshore structures.

• Accommodation services: Providing living quarters for personnel working offshore.

• Renewable energy support: Facilitating the installation and maintenance of offshore wind farms.

The self-propelled nature of GMS's vessels allows for efficient relocation without the need for tug assistance, enhancing operational flexibility and cost-effectiveness.

There are plenty of customers of GMS in the offshore energy sector, such as oil & gas companies, renewable energy firms, as well as EPC contractors. It sells the chartering of vessels as well as maintenance, catering, and logistics support during vessel operations.

The chart is awful.

It’s not something I’d look at and want to buy. However, the stock keeps putting good news out.

An upgrade to its 2024 and 2025 guidance was announced this week and the company is deleveraging faster than expected as EBITDA increases.

The problem is that major shareholder Seafox is holding the price back.

It has distributed its shareholding to its own shareholders, who may wish to decide to sell their positions.

This is creating an overhang in the market. So despite the good news, the share price remains depressed.

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