Buy Great Offshore; target of 470: IIFL


Bangalore: IIFL is bullish on Great Offshore and has recommended buy rating on the stock with a target of 470. According to IIFL, Great Offshore has been trading sideways in range of 424-464 since May 10 depicting a triangle pattern in intermediate term. Great Offshore is an India-based company. The Company is an integrated offshore oilfield services provider offering services to upstream oil and gas producers to carry out offshore exploration and production (E&P) activities. From drilling services to marine and air logistics, from marine construction to port/terminal services and beyond, the Company meets a gamut of the offshore requirements of an E&P operator. The Company has serviced E&P operators in India, as well as in the international waters of the North Sea, the Middle East, South Africa and South East Asia with its vessels that include exploratory rigs, offshore support vessels, anchor handling tug supply vessels and a construction barge. It also provides port and terminal support services through a fleet of harbor tugs. During the year ended March 31, 2009, the Company acquired 100% interest in two companies, KEI- RSOS Maritime Ltd. and Rajamahendri Shipping and Oilfield Services Ltd. IIFL says several times, the stock attempted to sustain above its long term averages of 200-DMA (daily moving average) but soon turned out to be a whipsaw as volumes failed to ignite a momentum. Wednesday's closing above 440 with volumes greater than 10-DMA indicate strength in the counter with breakout confirmation on line chart accompanied by prices sustaining above 50-DMA. With the recommendation target price of 470, if the stock is bought at Thursday's closing price of 444.30, the percentage of gain would be 5.46 percent.