Hydro Intl Share Discussion Threads

[gac100] 04/9/2007 08:51

Love the new more detailed segmental analysis in the notes. The profit before tax from North America stands out for me: +£95,000 from -£114,000 in H1 last year. Good evidence of the wisdom of HYD's investment there over the past few years, and a clear indication of the great potential in that market.

Edit: Nice to see a measured response so far by the market to the results

[rivaldo] 04/9/2007 08:05

The market seems to like the results....

Steg, you may be right - as with other small caps a few sells from short-termers could drag the price down initially. But everyone knew that H1 had started slowly, so those expectations were already out there - given that and the subsequent share price rise, hopefully the impressive order book, cash pile etc will win the day.

Certainly imo HYD is a potentially big winner in the medium and long-term. Philjeans has summed it up nicely above.

OT : SVR may be worth a look (ISAble too).

[philjeans] 04/9/2007 07:53

No need to be sensational when you've got a solid, profitable niche business with outstanding prospects.

Buy and hold.

[gac100] 04/9/2007 07:52

Stegrego, you could be right on 200p being tested again. Could be opportunities ahead for long-term investors to buy more - that's what I'd be looking to do.

[gac100] 04/9/2007 07:48

Yes, prospects for H2 look excellent. I was expecting cash flow and operating margin to be a little better in H1. I'm not sure the market will give the results a thumbs up, but hopefully investors will be looking at what H2 promises, rather than on the 'broadly in line' H1 figures. I agree with you when you say that "the £100k exceptional from Egypt which actually is in the course of the core business so I don't really call it particularly exceptional" - Off the top of my head I think there's been 3 uch 'exceptional' licence payments in the past 6 or 7 years! Haven't been through the notes to the results in detail yet, so back to them for me.

[stegrego] 04/9/2007 07:37

Sector is great, results not so IMO.

Still, looking forward should improve considerably in theory. However, due to current climate, wouldn't be suprised to see a test of 200p again soon.

[rivaldo] 04/9/2007 07:23

Well, we were spot on gac100 :o))



Solid results showing improvement and potential, and most importantly a vastly improved order book and confident outlook statement, especially given the slow start to the year. The £2.9m cash is 10% of the m/cap.

Again HYD haven't done themselves any favours by not showing the EPS adjusted for the £97k goodwill - if you strip this out then the adjusted EPS for the usually weaker H1 is 5.2p.

This includes the £100k exceptional from Egypt which actually is in the course of the core business so I don't really call it particularly exceptional. And there's no narrative about it at all, despite it being another key geographic area opened up!

[gac100] 03/9/2007 12:51

Hi guys, just catching up after a few weeks holiday. Really looking forward to the interims tomorrow. Riv, I think you're right not to expect anything supersonic (from H1 that is); I'm expecting very solid with continued improvement in cash flow and operating margin. Hopefully, they'll also take up your suggestion that they highlight adjusted eps in the announcement. The forward-looking statement should be particularly interesting, and as they have a track record of unextravagent prospects statements it will probably merit a close reading to gauge just how good the full year is likely to be. Personally I think it could prove to be very good indeed. All the best, gac

[rivaldo] 03/9/2007 12:12

Hi GI, welcome back. I'm also hopeful the H1 results will be good, but I'm not expecting anything supersonic. HYD is on an (imo well-deserved) premium rating because of its IP, its sector, global potential, cash pile etc, and that should continue as long as HYD carries on performing well and expanding, but I think faster growth will arrive in H2 onwards. By which time if buyers haven't already bought in it'll be too late since HYD is so volatile.

[greek islander] 03/9/2007 08:39

Back in today in a small way (2nd time around - shouldn't have sold last time) with a view to increasing my holding later. Will try not to get bored with this one this time around. Hopeful for good response from the market tomorrow,

[rivaldo] 30/8/2007 21:13

Results next Tuesday - a bit of sneaky buying today in preparation for them?

[rivaldo] 30/8/2007 12:34

Good results from Amiad today, though something doesn't convince me about them, don't know what! I see the broker's price target is only just above the current share price too, so they're not convinced either!

Anyway, this small extract reads well for HYD too:

"The market for Amiad's products continues to expand with greater global
investment in water infrastructure. Specifically, there is increasing investment in the municipality area (waste water, desalination and potable water) due to stricter restrictions and regulations being introduced worldwide."

[rivaldo] 27/8/2007 18:20

Ta polzeath - this was a particularly interesting quote:

"A review was now being conducted into flood defences at power, fire and police stations and sewage works.

"The important question is whether the critical infrastructure sites have adequate defences."

Too many articles recently to list about sewage and waste control, flood defences etc. There was another article recently about "A house for 2087" (from memory) which incorporated underground rainwater storage - cue HYD's Stormbank.

Here's an article from the Times about beaches polluted by sewage and the need for HYD's SYDS solutions:



"Mr Bell blamed the decline in standards on the heavy rain and said this was a wake-up call to the Government to invest in counter-pollution measures. "With climate change there will be more summers with violent storms and flash flooding," he said. "These are likely to be the weather patterns of the future and so we need to look at ways to mitigate st-orm-relat-ed pollution or beaches falling below standard."

He said that new urban drainage systems were needed to reduce the amount of pollution that washes off city streets. He also called for an expansion of the sewer system to handle large volumes of storm water."

[polzeath] 26/8/2007 06:31

I think HMG-UK will take all aspects of flood control extremely and increasingly seriously in future. Not to do so will lose voters, big time.

[garth] 23/8/2007 13:16

Just back from pushing 4 weeks hols. Very nice.

Riv,

noted your clip from the IC piece:


rivaldo - 17 Aug'07 - 12:31 - 1908 of 1912


I took a look at the IC tip - if you're a follower of this thread you'll know everything that it says! Although it does talk about implementation of the European Framework Water Directive benefiting HYD - from memory it said for 2009 implementation, so not long to wait."

From memory part of the EU directive deals with run-off and pump out into rivers & estuaries. It was one of the things that led to my first purchase of CDE several years back. The regulations should increase demand for their MBR tanks.

Still not altogether convinced by CDE following previous difficulties - although I do hold a few.

G.

[rivaldo] 23/8/2007 12:53

Bouncing perfectly chart-wise :o)) Nice £20k buy earlier.

[rivaldo] 22/8/2007 19:52

Pressure for action is building, with HYD taking the lead:



"Government urged to take action to limit future floods
(22 August 2007 00:00)

After a summer of flooding and continued un-seasonal rainfall, drainage experts have urged the government to remove legislative hurdles to innovative solutions and make a major investment in the UK's drainage infrastructure to prevent further disasters.

Alex Stephenson, UK sales director at Hydro International, said there are many examples where technical solutions have been unacceptable to water companies due to the failure of legislation and lack of charging mechanisms.

"Sustainable urban drainage systems can prevent silt build-up in sewers and hold back water accumulation, but developers and designers find gaining approval difficult," he explained.

"Currently, the Environment Agency, Department for Communities and Local Government and water authorities all have different responsibilities, slowing down decision-making. One stormwater authority would mean an awful lot of barriers and hurdles would be overcome."

But with little space to retrofit sustainable drainage in existing developments, the Concrete Pipeline Systems Association (CPSA) has called for the capacity of all refurbished storm drainage systems to be doubled.

Andy Goring, chairman of the CPSA, said: "The major incidents of flooding during 2007, coupled with the dreadful pollution incidents from overflowing sewage, are a wake-up call to the infrastructure community."

As part of a six-point plan to be presented to the government, the association has called for a thorough survey and national investment programme to be undertaken and the separation of all combined sewers carrying storm water and sanitary sewage.

Stephenson continued: "We must keep materials that cause sediment and blockages out of sewers. Whatever we do, it will be a long process.""

[rivaldo] 21/8/2007 09:31

Dave, thx for posting, but I think you'll find that that's the wrong Hydro! Their one is a Norwegian offshore producer of oil and gas...



Amazing really, HYD were finally tipped in the IC on Friday, yet there's been less than 50k shares traded since then! Typical that the tip should happen in the middle of a market meltdown AND when many are on holiday.

Results are out in exactly 2 weeks' time and should show continued good progress and much optimism imo.

[davebowler] 20/8/2007 16:10

Just noticed that this is held by Merrill Lynch Commodities Income (Investment Trust)in their top ten holdings.
Nice to know we're in good company.

[rivaldo] 17/8/2007 12:31

I took a look at the IC tip - if you're a follower of this thread you'll know everything that it says! Although it does talk about implementation of the European Framework Water Directive benefiting HYD - from memory it said for 2009 implementation, so not long to wait.

Nice 17,500 buy at 210p.

[rivaldo] 17/8/2007 08:55

Excellent news - the IC should attract more interest (mind you, not a single share reported traded yet!).

Hopefully it'll become available on the web site over time if some kind soul doesn't post it here first.

OT : 2020, if I had a pound for every time someone said "kiss of death" I wouldn't bother with investing in shares! They get some right and some wrong - with 7,000 or whatever shares to cover it's a thankless task....and people always concentrate on the losers rather than the successes.

[2020hindsight] 17/8/2007 08:08

Oh dear, kiss of death then !!!!!

Mind you, the IC do occasionally get it right.

[polzeath] 17/8/2007 07:26

INVESTORS CHRONICLE
Tips:
* Buy Hays at 162p - Bellway at £12.27 - MyHome International at 97p - Hydro International 233p

[rivaldo] 16/8/2007 19:06

Yep, so many bargains, so little time :o))

RNS out tonight - interims out on 4th September. Note that there's no mention of problems, which they would have had to mention if relevant, so we can hopefully expect that H1 results will be nicely in line at worst.

Who's the silly sausage who panicked and dumped 8k at 205p when the mid-price was about 221p at 8.56 am?! Talk about getting taken for a ride by the MMs - that's the reason for today's fall.