Mermaid

Mermaid: JP Morgan has an unrated report out on the counter. The house recently sat down with Mermaid Maritime's senior management and took a tour of their Dive Support Vessel Mermaid Endurer. The Energy / Oil Services sector was identified in our December 2013 "Hail Mary" Singapore Stock List report as one to watch. The house continue to believe that outperformance in Singapore will be driven by smaller cap bottoms up thematics inclusive of Energy, Oil Services, Environment, Health Care, Specialty Property, and Software/Electronics. Mermaid currently trades on 5.9x FY14 EV/EBITDA vs. EZRA at 14x and Swiber at 7x; and on 9.7x FY14 EPS vs. EZRA at 9x and Swiber at 5.7x. Mermaid shares have outperformed the MSCI Singapore by 50% since Jan 2013 and the Oil Services Index (OSX) by 28%.