Zirax Share Discussion Threads

[stegrego] 26/6/2008 09:15

Shares mag

For the sixth year running, specialty
chemical company Zirax has
clinched the contract to supply
15,000 metric tonnes of calcium chloride-
based de-icers to Moscow City
Council for its 2008/09 winter season.
The contract is worth $4.5 million
and places Zirax in a strong position to
win future contracts later this year to
supply its value added de-icing product,
IceMelt. 'It is a continuation of the relationship
we have had with Moscow,'
says chief financial officer Fenlon
Dunphy.
Zirax's de-icing products benefit from
their ability to penetrate the ice quicker
than most other de-icers, melting ice
and snow at temperatures up to -35
degrees Celsius. They also better meet
the environmental concerns of governments
and
local authorities,
such
as Moscow
City
Council,
because much smaller quantities are
needed to achieve better results.
As well as targeting the de-icing solutions
market, Zirax also targets the oilfield
process chemicals market. Dunphy
explains that the company has continued
to expand the oil and gas side of
the business to take the risk out of the
business and reduce the seasonal
impact of its de-icing business. 'Oil and
gas is [now] just over 50% of the business,'
he says. The group continues to
grow both organically and through
acquisition. Earlier this year, Zirax
bought Austrian-based Solith
Anlagenbau und Service, which specialises
in the production and distribution
of value added
de-icing products,
and marking its first
acquisition into the
western European
market. 'We are very
active in seeking new products to put
alongside existing ones,' says Dunphy.
Shares says: The company continues
to show potential and recent share
price weakness could provide a good
buying opportunity.

[studhaves] 23/6/2008 18:57

I think its easy to have faith in the management when they have huge chunks of their own money where their mouths are.

[whonosewhy] 23/6/2008 18:30

Wow I've never seen this board so busy !

If Zirax can just stay down here a few days longer I get paid on Friday and intended topping up a little each month as I have done for the last few months. Then your 50% rise will be perfectly acceptable.

Peter Temple's decision did seem odd - i.e. lots of reasons for the Claimar Care fall and no reasons for Zirax fall means get rid of Zirax?

I was just suggesting a possible sheep mentality if someone small PIs are following his portfolio being a possible reason for sales.

I still like this company and have some faith in the management having seen them deliver pretty much what they said they would in the IPO document.

[stegrego] 23/6/2008 08:45

Oh what a shame ;)

[steveb3] 23/6/2008 08:43

Looks like the decision of Peter Temple to eject Zirax rather than Claimar Care from his iii portfolio has already badly backfired. Claimar Care today announced a profit warning which has immediately seen the share price drop a further 50%+ from 36p down to 22.5p in early trading.

[azalea] 22/6/2008 08:06

bookworm1

For me, a few large shareholders is one of ZRX main attractions -they have a lot to loose and can make decisions quickly. Russia's political and strategic clout rests on its energy and mineral resources. It is now viewed by foreigners as the most attractive country to invest in (ahead of China and India). Given soaring energy prices, the huge ongoing global investments by E & P oil and gas companies which consume 52% of ZRX sales, I can only conclude that profits will continue to climb. Once ZRX establishes a track record of increased profits from its increasing business footprint, I have little doubt that its share price will regain its rightful position and gain recognition by the 'city'as a money spinnner. Fortunately, ZRX prospects are not hindered by the current market problems.

[bookworm1] 21/6/2008 16:08

Hi guys I looked at this in April just prior to the results & after it had fallen from 12p to 11p. Whilst it seems to have everything going for it on the fundamentals the concentrated shareholding gave me cause for concern. Despite the announcement of good results the share price fell to its current price of 9p. IMO until the major shareholders have reduced their stake few investors will want to invest in a company where control is in the hands of so few. But diluting control means that more shares will have to be sold and currently the market has little appetite for that at the moment. Thats how I read the situation at the moment. I hope I am wrong but I would rather wait another year to see how things develop. A dividend might help. Good luck.

[studhaves] 21/6/2008 13:46

Steady now stegrego, be careful what you wish for!

I personally can't see anything wrong with Zirax, apart from the obvious xenophobic tendancies we brits have towards "foreigners" & their shenanigans :)

When more orders are secured it should do just fine, & as its one of the major players in a market where demand outstrips supply I can't see that being unlikely.

I hope :)

[stegrego] 20/6/2008 23:40

Im hoping this drops a bit more so i can get another load - 8p would be nice.

[steveb3] 20/6/2008 23:35

The 'expert' is Peter Temple. His iii model growth portfolio has taken a hammering of late due mainly, but not entirely, to the performance of Claimar Care and Zirax. Claimar is down 80% from its 12 month high and Zirex around 40%.

Amazingly, Peter waited for the Claimar Care share price to drop from above 160p to 34p before deciding to put a 30p stop loss on it ! The background to the Claimar share price decline has been the surprise and abrupt departure of the FD, a mixed recent trading statement and trouble coping with the costs associated with the eight acquisitions made since coming to AIM in 2006.

Peter states that radical surgery was required to his iii portfolio this month and so decided to get out of Zirax rather than Claimar Care, despite being at a loss to explain the recent share price weakness of Zirax.

Being a little cynical by nature, although age is now my excuse, I note that Peter has previously declared a personal family holding in Claimar Care and I think this may well have influenced his decision on this occasion. However, i do not believe it is supported by the fundementals.

I still retain a personal holding in Zirax with an average of 12p, and am very pleased to have sold out of Claimar Care at 97p earlier this year for a small loss just prior to the big recent drop.

[azalea] 20/6/2008 16:20

Trust your own instincts and awareness of the geopolitical scenarios. Crude prices back up again after the experts predicted a significant fall. The only ones who have got it right are those forecasting higher prices, whilst exploration and production drilling goes full steam ahead.

[studhaves] 20/6/2008 13:42

Perhaps he can tell us which are his better options, then we can see how much of an "expert" he is. I've been arguing with "experts" for about 18 months now that banks & housebuilders are goosed, & its funny that they told me then that I didn't have a clue what I was talking about, & even now after they've lost well over 50% of their intial capital, I still apparently don't know what I'm talking about.

I like Zirax & think it offers a superior long term return to almost anything else I've looked at, & if the "experts" want to disagree, then it makes me feel a whole lot better. Its when they agree with you on how good something looks & the price has fallen that you need to worry, they all jump ship like sheep because they haven't a clue what they're doing & haven't the backbone to stand by their convictions, if they have any.

[whonosewhy] 20/6/2008 13:06

I have seen an article by an "expert" on iii website that looks after a Growth Portfolio and he has said he is selling his Zirax holding. The best bit is that he does not have a reason for the fall or a reason why he is selling - just that he feels perhaps there are better options in the short term.

Maybe some followers?

[thwarnts] 20/6/2008 12:53

why the sell off

[thwarnts] 19/6/2008 18:13

LONDON (Thomson Financial) - Chemicals group Zirax Plc. said it has won a
contract worth $4.5 million from Moscow City Council to supply 15,000 tonnes of
calcium chloride based de-icers.
The company also said it expects to win future contracts later this year.

I think you'll find this is just the start of the contract not the whole. Only 15k tonnes so far. So more to come

[azalea] 19/6/2008 13:35

An article in the D.T. today said that Russia is the most favoured country for investing ahead of China and India - where money is being withdrawn at the double on fears of inflationary risks, whilst the U.S.A. is coming back into favour. Given that Russia's economy and political strategy is based on its wealth of resources especially oil and gas, I believe that demand for ZRX products can only increase.

[masurenguy] 19/6/2008 13:13

This has been on my watchlist for awhile. I like the business model and the sector but have reservations about investing in a Russian company for all of the obvious reasons. This may also be the reason for the languishing share price and the lack of response to what is clearly some good news.

[studhaves] 19/6/2008 13:10

Wait until they cotton on, it'll boom.

The great thing here is that Zirax are the biggest Eastern producer of CC, & I think 2nd or 3rd in the World, & are expanding their products into other industries.

They could be an excellent long term investment from here, I think of them as a kind of Buffett stock.

[stegrego] 19/6/2008 13:08

Odd that confirmation of good news about what is the most worrisome thing about ZRX gives zero reaction

[thwarnts] 19/6/2008 13:01

Yes, good news that was expected. Not many onboard here though, buying wise

[azalea] 19/6/2008 12:26

Excellent news - cementing a strong relationship with Moscow Council, which could provide a springboard to achieve similar orders in other Russian and central European cities. Definitely underrated and under valued.

[buzzaldrinsballs] 19/6/2008 09:28

Zirax plc

("Zirax" or the "company")




Moscow De-Icing Contract




Zirax plc ("Zirax" or the "Company"), the AIM quoted speciality chemical company focused on the development, production and sale of oilfield process chemicals and de-icing solutions is pleased to announce that it has won the contract to supply 15,000 Metric Tonnes ('MT') of calcium chloride based de-icers to Moscow City Council for its 2008/09 winter season.




This particular contract, worth $4.5m, means Zirax will supply its de-icing products to Moscow for a sixth consecutive year and places the Company in a strong position to win future contracts later this year to supply its value added de-icing product, IceMelt™.




Zirax's de-icing products are more efficient, as they penetrate the ice quicker than most other de-icers, melting ice and snow at temperatures up to -35° Celsius, and better meets the environmental concerns of governments and local authorities, such as Moscow City Council, because of the significantly smaller quantities required to achieve better results.




Commenting on this announcement, Valery Andosov, Chief Executive of Zirax said:

"We are delighted that Moscow City Council has again chosen us to supply them with Zirax's value added de-icers, which we believe places us in a strong position to win future contracts for renewal later this year. As we continue to grow our business in other areas, Moscow still remains an important account for Zirax and we look forward to continuing our working relationship with the council."




About Zirax

Zirax is a speciality chemical company manufacturing and supplying oilfield process chemicals and de-icing solutions to a global customer base. Zirax is the second largest supplier of calcium chloride pellets globally and the leading supplier in the Eastern Hemisphere. Zirax is quoted on AIM section of the London Stock Exchange (ticker: ZRX), is headquartered in London and has supply sources based in Western Europe and Russia. More information is available at www.zirax.com

[lecks17] 11/6/2008 22:29

The seller is still out there we will find out eventually who it is
until then i think your right not to buy studhaves

[studhaves] 11/6/2008 20:30

Well,
it continues to fall on little volume. Strange for a company that is the 2nd largest supplier globally of high grade pellets.

I won't be buying any more until the slide has stopped & it starts to go the other way, but I feel that a bargain is to be had here at some point.