Hydro Intl Share Discussion Threads

[capa] 04/5/2007 09:56

Is this going to breakout this morning ...?

Looking good so far

capa

[rivaldo] 04/5/2007 09:45

A new high on 3 small buys....

[rivaldo] 03/5/2007 20:59

No trades at all today, yet the price is up? I assume there's a buyer in the wings as cheap suggested above.

[rivaldo] 02/5/2007 19:43

Excellent news cheap. Great to end up "net net" on the day too.

The HYD site in the USA has fleshed out one of the recent big contract wins a little - seems it was based on a US solution previously used by HYD:



" Hydro International Receives $2.6M Deal
01-May-2007

Combined Sewer Overflow Solution Based on Innovative Project Design Recently Implemented at Treatment Facility in Saco, Maine

PORTLAND, Maine -- May 1, 2007 - Hydro International, a leading provider of environmentally sustainable products and innovative solutions that control and treat stormwater, wastewater and combined sewer overflows, recently announced the receipt of a $2.6 million contract to provide solutions for a large river clean-up project in Belgium.

The deal calls for Hydro International to supply Combined Sewer Overflow (CSO) technology with 37 Storm King® Overflow units with Swirl-Cleanse™ Screen Separators and one Grit King® Separator. The Belgian solution is based on the same innovate design Hydro implemented in November 2006 at the Treatment Works facility in Saco, Maine.

The Belgian project is located in the city of Namur in the Wallonia region. Part of the contract allows for partial fabrication under license by the main contractor, CFE EcoTech, with key component manufacturing being retained by Hydro. The contract will be handled by the company's Water and Wastewater Division in Ely, U.K., and will be spread over three years.

"This deal illustrates the true power of Hydro's international enterprise, taking an innovative design, our U.S. engineering for Saco, Maine, and working with our partners in Belgium to apply it in a new setting," said Stephen P. Hides, CEO, of Hydro International, based in Portland, Maine. "We are proud to bring our synergies to this prestigious project.""

[cheap] 02/5/2007 16:33

And I think we have a buyer or two lurking. Even when the price was falling today you couldn't get more than 1000 on line and it's now possible to sell 25,000 - MMs 25 times keener to buy your shares than to sell them to you.

[rivaldo] 02/5/2007 15:12

Interesting 20 page PDF about the launch of a new 4 billion Euro investment fund concentrating purely on the water industry!



They are of course concentrated on the biggies, but much of the info aplies equally to HYD. For example:

"Investment thesis – a reminder
1. Outdated or non-existant infrastructure
2. Outsourcing of water services
3. Increasing demand for water worldwide
4. Water supply is a natural monopoly"

"General outlook
In 2007, performance of the water industry should be driven by
�� Continued interest from private equity firms
�� In 2006, more than 20 bn$ were invested by private investors to acquire water related companies (less than 4 bn$ in 2004-2005)
– Most notable examples : AWG, Thames Water, Techem
– Private equity firms attracted by earning's visibility and long-term regulation
�� Increased spending in water infrastructure
�� In China, peak spending of US$ 125 bn for 2006-2011 but a lot of previously
commissioned work remains to be completed
�� In the US : impact of the EPA's new regulation // In Europe : impact of the water's directive
�� In water stressed regions : increasing number of desalination plants to be commissioned (Spain-Qatar-UAE)"

[rivaldo] 02/5/2007 14:12

There you go - we're now effectively up on the day.

[rivaldo] 02/5/2007 12:10

Oops :o)) Ta capa, completely forgot that. The 2.3p divi does account for the drop then (and perhaps the initial drop was enough to panic those couple of subsequent small sellers).

[capa] 02/5/2007 12:03

Ex divi today, may have contributed to the drop.

capa

[cheap] 01/5/2007 10:36

Riv - it's been very rare over the last month or so for there to be any more than 1000 - 1500 shares available.

Watched last Thursday's Grand Designs - I think it must be the one referred to in the Annual Report as featuring the 'Stormbank' rainwater harvesting system. Unfortunately the building in Guildford had already had the storage system installed before the camera man's first visit so all we saw was a manhole cover. Although neither Hydro or Stormbank were mentioned it was fairly clear that the couple would be saving and using their rainwater. Evidence at least that this is a growing trend and seen as a 'good thing'.

[rivaldo] 30/4/2007 15:05

Ta M.

Out of interest you can sell 5,000 HYD online and only buy 1,500, which I think shows where we're going. Especially as sellers are getting more than the bid price. More to come here I feel.

[masurenguy] 29/4/2007 08:51

Hi rivaldo - you've got mail.

[rivaldo] 29/4/2007 08:19

Gac, good spot. With no forecasts for 2008 these figures strike me as an initial effort by Peel Hunt post-results and pre recent RNS's, maybe to be reconsidered later when the 2008 forecasts are issued.

I say that as I can't believe that they incorporate all the latest contract wins - HYD have never had such a run of big contract RNS's before.

Given that adjusted EPS increased from 7.68p in 2005 to 9.94p EPS in 2006 - up by almost 30% - the forecast looks ridiculously low anyway, but with 3 large new contract wins it looks even more out of synch!

I'll try to talk to HYD or PH about them.

[greek islander] 27/4/2007 12:45

Riv

Well you seem to be appearing on most of the bbs I wander into. No doubt encouraged by what is looking a very good day with GNG and RCG both well on course. OT sorry. Mind you I am having real doubts on CHNS and have sold two thirds now of my holding yesterday to immediately top up on GNG. It's all about comparing one company with another and deciding objectively that one has a better long term prospect. Also GNG is more transparent and keeps the newsflow coming.

Considered going back into WNG from which I took a profit a couple of weeks ago (sorry if I am repeating myself) but simply fancied a change and a new ecologically friendly company to get to know like HYD was an attraction. Looks like the sort of company that has strong longer term prospects as you say.
Must find some new longer term companies to counterbalance the fast climbers that are not good for the heart.

[rivaldo] 27/4/2007 11:16

Hi GI. I hope "lively" is a good thing! I can't say HYD is a bargain on historic P/E for example with 9.94p adjusted EPS per my calculations. But I do believe that global demand for its products will only grow and grow - and HYD is in a position to meet that demand now with its expanded infrastructure and sales network.

As the share price rises HYD should also be more and more popular amongst institutional investors for ethical investing (that process is of course well under way with Impax and Lloyds now on the share register).

HYD also seem to be emphasising the possibility of further acquisitions using their cash pile (especially in the full Annual Report), which should lead to more interest and maybe earnings upgrades.

[greek islander] 27/4/2007 09:36

Riv

You're lively today.

After much consideration decided to follow you in here with a small toe in the water. This looks really undervalued - thanks for pointing it out. Once I get to know it better I'll probably increase my holding.

[rivaldo] 25/4/2007 20:37

Nice spot gac. I particularly like the "full line of products" as certain distributors have only had certain products to sell - this is therefore quite a big deal (and big enough to be announced on the news wires, unusually).

[gac100] 25/4/2007 16:24

News from the North American division:



"...agreement with ACG Technology Ltd. of Woodbridge, Ontario, to market Hydro International's full line of products in the Canadian province of Ontario."

& yes, nice to see Lloyds more than doubling their investment, in the announcement yesterday.

[rivaldo] 24/4/2007 19:12

And talking of further institutional interest....

Lloyds have just disclosed they've increased by almost 500,000 shares to 6.5% (915,000 shares) - not bad at all :o))

[rivaldo] 24/4/2007 11:01

Nice trade today - 5k bought at 179p, 2p above the full offer price :o))

Good points gac, I don't concentrate on the corporate governance as much as maybe I should. You're right, the additional non-exec will encourage funds to take a look.

In reading the way the Innovations Team have strengthened all the internal reporting etc, and the concentration on building up the corporate side of the company, you get the definite impression that HYD are gearing up for a step-change in market cap and general City perception.

[gac100] 23/4/2007 23:44

The Annual Report is great. I like everything I've read, and it looks like 2007 will be an exciting year, with significant turnover and profit growth.

A couple of points off the beaten track. It sounds to me like the Innovations Team is doing great work, and they will be a big asset for the orderly expansion of HYD.

I also like the new development on corporate governance. While Roger Lockwood has a great deal of experience, I've felt for the last year or two that ideally HYD's non-executive arm could be numerically stronger. So I'm pleased to see "the Board now considers that it would be beneficial to expand non-executive representation on the Board and is currently in the process of recruiting a suitable person." I think this is not only desirable given HYD's increasing size and complexity, but also a positive for attracting further institutional investment.

[rivaldo] 23/4/2007 21:26

Agreed Stegrego, seems like a new all-time high (just!)...

Today it seems like the Firth of Forth may not be quite as bad as feared - but as I said earlier there will have to be an overhaul of the systems up there, and HYD must be a prime contender to play a part.

I'll read the full HYD Annual Report tonight, but one point - in Waste and Wastewater, Westech (the US and Canada distributor) have arranged demo of SludgeScreens in "several cities" and "first orders" are expected in 2007. These are bigger ticket items from memory. Overall the tone of the interest emanating from the USA is extremely positive.