Modern Water Share Discussion Threads

[freddie01] 02/5/2015 16:30

Couldn't agree more.

[p1nkfish] 02/5/2015 09:48

Good decision in my opinion.
Train wreck.

[timberwolf] 01/5/2015 18:04

I've been posting on this MWG thread for around 7 years. I was one of the first. I've just popped back to see some recent views, many from the regulars, and many thanks for those guys. However, I've bailed out and cut my losses. It was always a punt, as I've said many times in the past. I sold my whole holding about two months ago and have gone elsewhere. I've always feared the cash burn, as posted many times over those years. It's continuing, unabated.

IMHO they are going nowhere! Good luck to those that are hanging on. I ain't! :-)

Right, or wrong, I've switched everything over to AXS, another AIM punt of mine. Thankfully recent rises in that share price has covered some of my losses in MWG.

I'll look back, from time to time, probably to see that I've got out at the wrong time....LOL!

[p1nkfish] 28/4/2015 21:32

think the agm is 30th April?

[ohisay] 28/4/2015 14:13

If anyone he did he clearly fell into a coma.

[p1nkfish] 17/4/2015 19:18

Anyone able to get to the agm?

[pugugly] 16/4/2015 10:02

New Chairman Also non exec Chairman of Pressure Tech - From the Pressure Tech site

"Alan Wilson
Non-executive Chairman
Alan is a degree-qualified Chartered Engineer with 33 years of experience from working in the oil & gas industry, the majority of which has been served at senior management and board level. His experience spans most aspects of the industry life cycle including; oil company operations, major capital projects, support services and product manufacturing. Alan joined the board of Pressure Technologies in February 2013 and also serves as Chairman and Non-executive Director of other private equity-backed and privately owned companies within the oil & gas sector. Alan is Chairman of the Nominations Committee.

From Modern Water rns -

9 April 2015

Modern Water plc

("Modern Water")



Appointment of Chairman


Modern Water plc (AIM:MWG), the owner of leading technologies for water and wastewater treatment and monitoring of water quality, is pleased to announce the appointment of Alan Wilson as Non-Executive Chairman, with effect from 30 April 2015.
Alan is a Chartered Engineer and a Member of the Royal Institution of Naval Architects. He has extensive business experience having held senior management positions at Kvaerner Oil & Gas, the Weir Group PLC, CRP Limited and Trelleborg Offshore Limited.
Alan currently serves as Non-Executive Director and Chairman on a number of boards, where he has successfully advised on strategic development and overseen corporate and sales growth.
Robert Clarke, Modern Water's Interim Non-Executive Chairman, commented: "On behalf of the directors, I am delighted to welcome Alan to the Board of Modern Water. Alan brings a successful track record of growing revenues and realising shareholder value across a range of businesses in both the listed and private sectors."
Regulatory Information for Alan James Stark Wilson (Aged 57).
Current Directorships
Integrity Services Limited
Rimor Limited
Willoughby (873) Limited
Pressure Technologies Plc
Mablaw 555 Limited
Alderley Plc
Rage Management Limited
SHA Lodge Freehold Company Limited
Directorships held in last 5 years
ICR Integrity Limited
Killerfix Industries LTD
Trelleborg PPL Limited
Trelleborg Offshore Barrow-in-Furness Limited
Trelleborg Offshore UK Limited
Broomco (3054) Limited
Alan Wilson does not currently hold shares in Modern Water plc and no further information in connection with his appointment is required to be disclosed under Schedule Two, paragraph (g) (i) - (viii) of the AIM Rules for Companies.

Two initial reactions:-

1. Positive. A very experienced operator and apparently a commercial animal.

2nd. Slight worry;- Does not seem to have any direct experience with WATER but should hopefully have had significant exposure to waste water pollution and experience of directing "university oriented" technical experts onto the commercial road. HOWEVER given the current rate of cash burn I suspect there could be a further kitchen sinking and new fund raising. The BIG questions are how big a discount will be needed to get the funding away and how much will be needed?

From last accounts indicated cash burn is in the region of £4.5 million p/a. The accounts state cash at 31 Dec of £6.8M. Subject to current burn, potential exceptional restructuring costs, and a good working capital cushion I would have expected he would like to raise somewhere in the region of £6 -£10 million and need to offer a discount of 20%-40%

[ALL imo and best guess - no insider knowledge and not holding (nor have I ever held) but been on watch list since just after listing as in a massive growth area but I never had confidence in the execution strategy -

Watching and waiting to see if I like the changes before deciding whether to invest.



--Ends--

[p1nkfish] 29/3/2015 19:06

look at these

[p1nkfish] 29/3/2015 19:03

The MWG plant shown here. Dec. 2014, solar.

[p1nkfish] 29/3/2015 18:58

If they do win a big project they will need to raise working capital. I wondered if some of that might be found from the IPO funding round.

[p1nkfish] 29/3/2015 18:53

Very frustrating to see how many desalination contracts are being awarded with no mention of MWG, above is 26th March 2015.

[p1nkfish] 11/3/2015 17:51

They should put the for sale sign up and stop pretending they have much of a business accumen. No buyer would maintain this abyssmal management and swapping that out alone would improve prospects.

[andrewbaker] 11/3/2015 12:30

Case of the science is better than the business. MWG certainly seem to need management stimulus, especially on the sales side. Cash burn cannot go on forever, and if revenue doesn't increase soon through new contracts, a dilution of equity due to a new share issue is on the cards. At the current price, it may be worth a punt on the grounds that it is as likely to double as half in price, and so the gain will be twice the loss, mathematically, lol. :)

I'm both holding and watching ... Just hope that 2015 does bring in deferred orders and more good news like the Gibraltar potential.

[p1nkfish] 11/3/2015 09:43

Management is poor, tech is ok/good.

Needs a new broom as this should be solid given the sector and potential demand.

Dump a few of the managers, cut overheads, bring someone in with drive and incentivize properly.

[pugugly] 03/3/2015 08:55

GB & TIMBERWOLF:_ Thanks for your update re MoneyWeek - Agree fully with your views - Still keeping on watchlist for possible action IF & it is a big IF there is the possibility of a turn round but it looks to me to be the fatal combination of flawed technology (works well in the lab and small scale tests but somewhere has glitches on scale-up) Nothing specific has emerged to support this view but reading between the lines of the minimal adoption something seems to be wrong, and very poor management - especially on the sales side

[gb904150] 02/3/2015 21:59

Hi Timberwolf,

I'm not invested in MWG but I've tracked for a long time. As you say, MoneyWeek amongst others have given them a mention several times but companies with the comfort of big cash piles tend to see them dwindle.

Good guess on the tip- MoneyWeek did mention in their 27th Feb issue.

There's a quick summary of forward osmosis being vs reverse osmosis; less energy/expense/waste.

Delayed orders have hit revenue, MWG loses money but T/O growth expected to increase. Still plenty of cash and little debt.

As you say - to an outsider and at this price it might look like a decent punt but unless orders are finally happening it's still a bit 'jam tomorrow'.

[timberwolf] 02/3/2015 19:34

After a bit more research it appears that the 26th February issue of MoneyWeek had a cover page "The hunt for water - The most valuable commodity" and an article entitled "Investing in water: Profit from liquid gold". Unfortunately I don't subscribe to MoneyWeek so can't read it, but I would make an educated guess that there was something in there about MWG. However, if it is that which has affected the share price today, let's be honest, we've seen this all before, and it does nothing to affect what I consider to be a company adrift!

[timberwolf] 02/3/2015 17:41

Sadly, it's the same old, same old, Pug. I had to take a double take when I checked the share price today! It's been a steady move down for some considerable time now, with no real news apart from the odd minor sale somewhere. I really don't know where they are going now. The whole operation is so fragmented, with, as you say, cash burn continuing.

I've pretty much given up waiting for some positive news on the reverse osmosis desalination front, apart from the tiny trial projects. I just get the feeling they've lost their way and are just burning money.

As you're aware, any rise in the share price has often, in the past, been purely down to some tip or another. That's probably the case now, but I'd be very pleased if it was something more positive, but I've not seen anything to warrant that. Maybe it's someone "in the know", buying ahead of better news being released? ;-) However I doubt it.

[pugugly] 02/3/2015 13:25

Anyone knwo if this was tipped over the weekend ?

Volume up - share price up for no apparent reason - Still a massive cash burner with low revenue and no profits.

[p1nkfish] 26/1/2015 09:16

first microtox in usa.

[timberwolf] 18/12/2014 12:01

Paint, dry, watching! ;-)

[p1nkfish] 18/12/2014 08:17

notice 'poised'.

if 'poised' doesn't become 'will' he'll already be out of the picture and unsullied.

A non-exec Chairman should be cheaper so this could just be a cost reduction?

[p1nkfish] 18/12/2014 08:14

He's using that contract as a cover to sign-out.
It's hardly enough as an excuse to move.
They need more.
May just be he has realised the limits of his abilities.
'significant revenuues' - we shall see.

[pugugly] 18/12/2014 07:43

NC:- Unfortunately no short - However if I had one I would probably close first thing.



Good news (imo) If we can now get a good business manager

Part of Neil's departing staement sums up for me why the share price has fallen and fallen .

"allows me to step down to pursue my philanthropic interests. "



However the Gib contract is by no means in the bag - So not jumping in to go long. I