Hydro Intl Share Discussion Threads

[rivaldo] 22/5/2009 12:59

Not offhand Garth, must be in the accounts - will look at some stage.

Seems like most of us here are happy to hold at this rating, but the volatility at quiet times will always be a problem.

In the meantime, HYD are getting on with business globally:



"Hydro International Signs Distribution Agreeements In Saudi Arabia, Singapore And Austtralia

21 May 2009
Deals Extend Company's Global Reach in Stormwater, Wastewater Markets

Hydro International, a leading provider of environmentally sustainable products and innovative solutions that control and treat stormwater, wastewater and combined sewer overflows, has announced distribution agreements covering stormwater and wastewater solutions in Saudi Arabia, Singapore and Australia.

Hydro International's agreement in Saudi Arabia appoints Centex Fluid Products to supply a series of products that provide flow control and grit removal capabilities for Saudi Arabian wastewater customers. Centex, based in the U.S, will supply products through its Riyadh, Saudi Arabia, office. Products Centex will distribute include the Hydro-Brake® Flow Control device, the Eutek HeadCell™, the Eutek SlurryCup™, the Eutek Teacup™, the Eutek Grit Snail™, the Decanter, the Grit King®, the Classifier, the Grit Cleanse® and the SludgeScreen™.

In Singapore, PA Watertech PTE Ltd. will distribute Hydro International systems that control and treat stormwater. The distributor will market the Hydro-Brake® Flow Control, which is used in stormwater and wastewater applications, and Hydro's Downstream Defender®, First Defense® and Up-Flo® Filter. PA Watertech has distributed Downstream Defender stormwater treatment devices in other markets since 2008.

In Australia, Hydro and Rocla Water Quality of Chatswood, Australia, extended an existing agreement to include the Hydro-Brake Flow Control and Up-Flo Filter systems. Rocla Water Quality has distributed the Downstream Defender and First Defense in Australia for nearly five years.

"We are proud to be extending international distribution agreements in the Middle East and Asia Pacific regions," said Steve Hides, Chief Executive Officer of Hydro International. "We look forward to providing customers in these regions with innovative, reliable and cost-effective solutions to serve their wastewater and stormwater needs."

Wastewater products being marketed in the new agreements include:

· The Eutek HeadCell™, an advanced grit separator for the removal of grit and sand from wastewater, potable water and industrial effluents
· The Eutek Teacup™, a versatile vortex separator suitable for grit removal and grit washing for flows less than 8 MGD
· The Eutek SlurryCup™, a highly efficient process used to capture, classify, and remove fine grit, sugar sand, and high density fixed solids from organic rich grit slurries, and both primary and secondary sludge
· The Eutek Grit Snail™, a high-performing grit dewatering escalator
· The Grit King®, a hydrodynamic grit separator device that provides consistent grit quality with low residual volatile organic matter
· The Grit Classifier, a secondary device which dewaters grit
· The Decanter, a grit dewatering container suitable for smaller
plants

Stormwater products distributed in Singapore and Australia include:
· The Hydro-Brake® Flow Control, a self-activating vortex flow control device that provides superior hydraulic performance over conventional flow regulators
· The Downstream Defender®, an advanced vortex separator that removes sediment, old and floatables from stormwater runoff
· The First Defense®, a vortex separator that provides stormwater treatment in a surface inlet device
· The Up-Flo® Filter, a high-rate stormwater filtration technology that removes debris, sediments, nutrients, metals and hydrocarbons from stormwater runoff"

[garth] 22/5/2009 10:18

Any ideas on what the total bill for bonuses is likely to be?

[masurenguy] 22/5/2009 09:31

This fall is only due to MM mark downs. Todays drop was triggered by just one Sell of 2000 @92p ! At this rate they will soon be a screaming bargain for a predator !

[nhb] 22/5/2009 09:26

It looks like 80p is coming. Completely ridiculous but that's the times and the market (AIM) we find ourselves. PE of 5 (!) then! Bonkers.

[woodsman2004] 22/5/2009 09:18

Hi Rivaldo,

Held these for years now - seriously long term investment and quite boring for long periods (no harm in that).

Will probably top up at around current levels, but I agree there does not seem to be any hurry to part with my cash!

[rivaldo] 21/5/2009 12:50

AGM statement out.

Good news - the profit forecast for the year is expected to be met. Bad news - slowdown continuing as anticipated in construction etc.

Since the forecast is for almost 14p EPS this year, with a 3.4p divi, one wouldn't have thought a P/E of 7 is particularly expensive, even in this market, particularly given HYD's market leadership. Might have to wait a while for serious upside though, unless there's bid activity or some of the green investment funds continue to take advantage of price consolidation/weakness.

[rivaldo] 18/5/2009 12:46

Excellent summary of the Eutek acquisition now posted - HYD looking for growth both in the USA and in other new overseas territories:



"Hydro International Celebrates One-Year Anniversary of Acquisition of Eutek Systems
12-May-2009

One year after its purchase of grit-removal equipment supplier Eutek Systems, Hydro International is positioning its U.S. Wastewater business for growth.

Hydro International purchased Eutek on May 5, 2008, and moved the headquarters of its U.S. Wastewater business to Eutek's home base in Hillsboro, Ore. The Wastewater business is responsible for the development and expansion of Hydro International's proprietary grit-removal technologies, and also carries the responsibilities for the combined sewer overflow technologies marketed under Hydro International's Wet Weather brand.

In the year since the acquisition, the integration of the U.S. grit-removal business's two leading players has proceeded well, according to Steve Tansley, Director of Hydro International's U.S. Wastewater business unit.

"The Wastewater business has performed well since the acquisition, and future prospects are very encouraging," Tansley said. "These prospects include scope for international expansion of Eutek products beyond North America."

In a difficult economic environment, the addition of Eutek Systems' product portfolio helped push Hydro's 2008 worldwide sales up 16 percent.

Hydro International's U.S. Wastewater business features a blend of products brought together through the acquisition.

Products include items from the Eutek portfolio: the Eutek HeadCell™, an advanced grit separator for the removal of grit and sand from wastewater, potable water and industrial effluents; the Eutek Teacup™, a versatile vortex separator suitable for grit removal and grit washing for flows less than 8 MGD; the Eutek SlurryCup™, a highly efficient process used to capture, classify, and remove fine grit, sugar sand, and high density fixed solids from organic rich grit slurries, and both primary and secondary sludge; and the Eutek Grit Snail™, a high-performing grit dewatering escalator.

Products in the portfolio also include Hydro's existing grit technology, the Grit King®, a hydrodynamic grit separator device that provides consistent grit quality with low residual volatile organic matter; the Grit Classifier, a secondary device which simultaneously cleans and dewaters grit; the Decanter, a grit dewatering container suitable for smaller plants; and the Reg-U-Flo® Vortex Valve, a self-activating vortex flow control device that provides superior hydraulic performance over conventional flow regulators. The company also boast a comprehensive range of efficient combined sewer overflow management technologies under its Wet Weather brand, including the Storm King Swirl–Cleanse®, the Heliscreen®, the Hydro-Static® Screen and the Hydro–Jet® Screen."

[rivaldo] 17/5/2009 11:08

HYD mentioned in the FT here:

[masurenguy] 12/5/2009 18:37

Todays fall was on a paltry volume of just 12k shares traded.

[nhb] 12/5/2009 17:35

Something's up with this share. I don't believe there is a problem with the business but there seems to be a big seller waiting in the wings depressing the price whenever it shows signs of revival. Very frustrating.

[masurenguy] 06/5/2009 16:43

Did a small top up today. The share price is currently at a three and a half year low. It has now declined to the same level that it was in Dec 2005. Since then sales have increased by 60% and profits have virtually doubled.

[rivaldo] 03/5/2009 07:45

:o)) I suppose all you can say is that many AIM companies have done a hell of a lot worse over the same period if you look at their current share prices.

I was fortunate enough to buy my shares at around 80p or so on the Vexamus takeover, so still nicely in profit - especially when one includes dividends. But it's been frustrating, especially considering how consistently well HYD has delivered.

Even more surprising, there has been institutional/fund interest here - unlike most companies this size - with Impax and Hazell Carr taking large stakes. They now have 17% between them! This should have encouraged others to take a bite.

The latest forecasts are:

2009 2010
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)
KBC Peel Hunt Ltd
29-04-09 BUY 2.90 13.97 3.40 3.13 15.05 3.70

On a 2009 P/E of 7.5, and paying a 3.2% divi, I believe HYD is very undervalued.

In this market you could say not hugely so in pure P/E terms, given a part of the business is reliant on construction. But the intangibles, such as:

- rarity value
- market leadership
- the fast-growing need for HYD's products
- global growth potential
- environmental credentials etc

mean that at some stage I'm sure HYD will regain ground.

The undervaluation is more intangible because of

[stegrego] 01/5/2009 19:24

Ive held it for 2 1/2 years and have yet to see a return, is that not long enough ? ;)

[masurenguy] 01/5/2009 18:36

Just got to be patient - value will out here in due course and there will be a sudden uplift when you least expect it.

[topgallant] 01/5/2009 18:34

Count your blessings Steg this isn't a bad one to be in!

[stegrego] 01/5/2009 12:48

This is the only thing i hold (apart from SQS and RCG [dont mention RCG]) that hasnt been caught up in AIMs recent 30% climb.

No interest here whatsoever it seems.

Frustrating, as im 30% down here and everything else has gone positive...

[topgallant] 30/4/2009 11:03

Thnaks Rivaldo - I wonder if the share price will move again before the next one

[rivaldo] 29/4/2009 08:05

Gone ex-div today for the 3p final divi in case anyone's wondering why the price is down.

[rivaldo] 28/4/2009 15:01

A new article on Agripods with much relevance for HYD:


Extracts:

"April 23, 2009
Scarcity of Water Round The World Should Be Concentrating The Minds Of Investors

California has just been pledged US$260 million in drought aid. Drought has forced parts of Texas to declare themselves disaster zones, and so have parts of Argentina and even New Zealand. Australia's Murray-Darling Basin, its major agricultural area, has seen the lowest three-months of water inflows for 117 years and the outlook is not good. In Northern China the government employed aggressive measures this spring to fight drought, enlisting millions of people to irrigate the dry fields, by bucket if necessary, in areas where water was available. Only last year Spain had to import drinking water. So it is amazing that water related companies do not do a lot better than the rest!"

"Meanwhile, drought seems to be concentrating more minds in Wall Street, with Robert Froehlich, chief investment strategist at DWS Securities, calling it "one of the greatest investment mega-trends of all time." Exchange Traded Fund, the US$1.2 billion PowerShares Water Resources has seen its share price rally to US$13.21 against a 12-month low of US$10.10 and a high of US$22.94. Investments are mainly the top infrastructure groups. Another ETF is the First Trust ISE Water Index, which mirrors an index that holds 36 water firms. In the year to date, it's about even with the market."

[rivaldo] 22/4/2009 14:49

ROFL!!!

Mas, spot on, I wish I had "the gift" as others evidently do. I'm as happy to hold here for long-term gains as i am to nab 50%-100% short-term gains elsewhere in the market. It's just a question of assessing each company individually.

Any decent interest will produce a result here imo due to the limited number of shares floating about.

I think the only concern holding things back is on the stormwater/construction side, but I feel the remainder of the business, the fundamentals and its worldwide growth prospects are more than enough to offset what should only be a temporary blip in one part of the business, particularly with beneficial currency movements at present and the Eutek USA acquisition coming through for a full year.

[masurenguy] 22/4/2009 14:01

Well we need some catalyst to kick start the share price here - despite the good news flow and positive trading results the share price remains stuck in a groove !

Perhaps if I was as smart as some other geniuses that post on other threads, I would have sold my entire stake here 6 weeks ago, bought Barclays at 70p, sold them this week for £2 and bought back 3 x my current holding here while the HYD price has flatlined during that time. What a fool I was to miss such an obvious opportunity that was staring me in the face. I bet some smart people here didn't miss that gift horse !

Oh well, back to being just a pedestrian LTH here :o|

[rivaldo] 22/4/2009 13:40

Ta LPF - will take a look.

£100 million for "green homes" just announced in the Budget - one would hope that some of this would be for rainwater harvesting systems like HYD's.

[lpf] 20/4/2009 15:25

Annual report out now - 3.6MB pdf -

[rivaldo] 19/4/2009 07:28

No probs whonosewhy. Perhaps you can persuade some of your clients to buy into HYD :o))

The latest forecasts FYI:

Year Ending Revenue (£m) Pre-tax (£m) EPS P/E
31-Dec-09 n/a 2.90 13.97p 7.9
31-Dec-10 n/a 3.13 15.05p 7.3

I can't wait to see what effects the US stimulus package has on HYD's wastewater prospects in particular over there. The Eutek acquisition was perfectly timed in terms of cheapness with the dollar at its weakest, in acting before the US infrastructure packages came into play and in terms of offsetting some short-term weakness in the UK. Perfectly played by management. It's not often I feel I can say that.

And of course HYD will continue to benefit this year from the weakness of the pound against the dollar and the Euro (though the pound is rebounding a little now).