Dynamac

Dynamac: - 3.5% at $0.41 after rising 7.5% Wednesday on winning a provisional $115m of orders for nine topside modules and pipe racks and one turret. AM Fraser note that while a significant win, it's not yet time to pop the champagne. Caution investors against over-exuberance like the last few times and getting swept up in a stock-price run unsupported by fundamentals.

Estimate the modules and pipe-rack orders at a combined $50m, making them small modules for Dyna-Mac. AmFraser views the stock as fairly valued after falling from astronomical peaks around $0.70 post-IPO, now trading at 3.0X P/B and 14.5X P/E vs industry averages of 2.9X and 15.1X respectively. But it's turned slightly more positive given high oil price and record global E&P spending. Keep a Hold call, raising its fair value to $0.44 from $0.38, after rolling over to FY12 forecasts. Orderbook quotes show buy orders clustered around the current level, indicating the stock may not fall further.