Hydro Intl Share Discussion Threads

[williebiz] 31/1/2008 11:13

Interesting

[rivaldo] 31/1/2008 11:08

Surely the more important point is that in the past anti-stormwater measures weren't part of builders' construction packages, whereas now they are due to regulatory change and public awareness of flooding etc, so most if not all new builds will be incorporating such products.

In addition, HYD are now selling worldwide with expanded sales networks and product portfolios. For a small cap like HYD the markets in the UK, USA, Korea, Japan, Australasia and Eastern Europe should be more than enough.

There are also prior posts on this thread talking about the amount of new builds required over the next few years in the UK - the Thames Gateway for a start (when it eventually gets going), but more importantly all over the country given the rise in population/demand for cheap homes etc. This is government-driven so shouldn't drop off the agenda for a while yet.

[wjccghcc] 31/1/2008 10:42

I hold a few but the thing that worries me here is that while the wastewater side should be going great guns, the stormwater segment (65% of revenues) are pretty much linked to contruction of new developments. Ireland was slow in H1 due slowing construction activity. Will that also be the case in UK/USA going forward?

[rivaldo] 31/1/2008 09:05

Like it Steg...."fill your butts" with HYD shares - catchy!

A strange tip since most of the article is about Amiad...still, being pretty certain now that the results will be just fine HYD is looking good.

[stegrego] 31/1/2008 08:10

Shares Mag


Two thirds of the world
population could
suffer water shortages
and pollution by 2025,
according to the World Bank,
which highlights the hugely
growing market for treatment
technology. Some £30 billion a
year is spent globally on water
treatment, filtration and desalination
plants but spending
might have to more than
double by 2020 to ensure
sufficient supplies of potable
water.
Though the industry is
dominated by conglomerates
such as Siemens (SI:NYSE),
there are a few smaller quoted
companies that might tempt
investors. Hydro
International (HYD:AIM) and
Amiad Filtration Systems
(AFS:AIM) are two junior
market stocks that are
thriving. Last week Amiad
issued a trading update saying
that demand for its products
was stronger than expected.
Sales into China took off in
the last half of 2007, prompting
brokers at Panmure Gordon to
say 'the increased global
demand for clean water from
both industrial and
agricultural sectors is creating
a hot market for Amiad's
products.' Amiad, an Israeli
company, should lift sales by
26% in 2007 to around £23
million with profits up to £2.4
million. This year Panmure
forecasts sales of around £30
million and profits of £3.3
million cutting the prospective
PE to 12.3.
Shares says: Fill your butts
with water treatment
shares.
BUY HYDRO
INTERNATIONAL,

[picnic] 30/1/2008 20:40

Thanks for the updates Rivaldo.Its looking good value after a bit of froth has
blown off. Might have a nibble myself.
o/t Judges Capital have issued a postive trading statement. Undervalued like VLE!

[rivaldo] 30/1/2008 20:26

I contacted HYD today - apparently there are no plans to issue a trading update prior to the results, which are set for 28th February.

There are two things to take from this:

- the results will imho be nicely in line with expectations, +/-10%, as otherwise a trading statement would be required. This is of course in line with HYD's usual policy of understatement and is exactly what happened last year.

- the results wil be out a week earlier than last year. This is also positive - good news always comes out quicker than bad.

The outlook (and order book) should be interesting. For example, HYD can reveal to the wider world the large grit removal contract which at present only we know about.

I may well add some more before the results.

[rivaldo] 30/1/2008 15:12

HYD would appear to fit the bill nicely, particularly with its Asian exposure:



"Williams de Broe to launch global water offering in second quarter Published: 13:14 Wednesday 30 January 2008

By Nicholas Paler, Investment Reporter

Williams de Broe is planning to launch a new product investing in water related securities around the globe in the second quarter of the year.

The offering will consist of a basket of stocks picked from an investment universe of around 100 firms which are linked to the commodity.

It will be predominantly exposed to emerging markets such as China, although it will likely have some UK exposure as well.

Williams de Broe's head of research, Jim Wood-Smith, said there were two main strands to the investment case for purchasing water stocks on a global basis.

He explained firstly that areas of Asia such as China were most likely to experience water shortages in the future, given the region's population growth and changing demographics, a situation which would increase demand and provide opportunities for investors.

'There's also the secondary theme about using water for agricultural purposes, and we want to create a basket of companies where the advancement of water technology and changes to infrastructure will make a real material change to their profits,' he said."

[dixies] 27/1/2008 11:35

Thanks to everyone who took the time to try and help with my problem. I have just been in touch with Orange again and they have now confirmed they are having problems with their servers and many users will not be able to access a number of websites/links. Their engineers are working on the problem and access should be available within the next 24hrs - just in time for the Monday market!

[alter ego] 27/1/2008 07:55

dixies, try this discussion board dedicated to selftrade matters - it's over at the "fool".

[dixies] 26/1/2008 19:36

Sorry to intrude, although I am a holder. Is anyone else having difficulty logging on to their selftrade account? Since Friday the link to log on does not work along with a number of other websites eg. Halifax.co.uk and FT.com. It is apparently only affecting those of us who have Orange as their service provider. Having contacted Orange throughout yesterday and today, they seem to be doing little to rectify the problem.

[rivaldo] 25/1/2008 07:30

Big US showcase coming up:



"Hydro International's Robert Andoh to speak at New England Water Environment Association Conference
Source: Hydro International
Published Jan. 23, 2008

Hydro International, a leading provider of environmentally sustainable products and innovative solutions that control and treat stormwater, wastewater and combined sewer overflows, today announced that Director of Innovation Robert Andoh will deliver a paper at the New England Water Environment Association (NEWEA) annual conference being held Jan. 29 in Boston.

Dr. Andoh will deliver his paper during a Tuesday afternoon session addressing wet weather planning and analysis. The paper focuses on the Hydro International Combined Sewer Overflow (CSO) solution deployed in Saco, Maine, and carries the title "Optimal CSO Control and Treatment at the Saco Wastewater Treatment Plant Using Advanced Vortex Technology."

A Hydro International exhibit booth at the conference will showcase the company's grit-removal solutions and its full line of products addressing CSO treatment, CSO screening and wet-weather flow control solutions.

The NEWEA conference is the largest wastewater environment conference held in New England. It features more than 170 exhibitors and attracts more than 1600 regulatory officials, wastewater utility engineers, consulting engineers, treatment plant operators and other interested parties. The 2008 show is being held at the Boston Marriott Copley Place Hotel.

Hydro's exhibit booth will include displays highlighting its industry-leading Grit King® process for removing grit from wastewater streams. The Grit King device is an advanced hydrodynamic separator that augments gravitational forces to separate grit from water. The Grit King System consists of the separator unit and a grit washer/classification unit. Valving, grit classifiers, grit pumps, dewatering decanters, and control systems are available as part of a comprehensive grit-removal package.

The exhibit will also focus on Hydro's full range of CSO solutions, which includes equipment to treat CSO outflows to primary treatment equivalence to accessory technologies for designing deep tunnel separation and storage schemes.

Hydro will be represented by several top executives and sector experts including Andoh, Chief Operating Officer Chris Williams, Wastewater General Manager Neil Raymond and National Wastewater Sales Manager Ken Medlin."

[rivaldo] 24/1/2008 10:40

Ta Garth. Yep, GNG looks an absolute winner and a potential multibagger over the next year or three imho. Not long till a trading update there.

Well done on DYS rebounding a bit - I'm still interested, but the volatility/illiquidity is a bit too much for me till there's solid news I think :o))

Nice trading statement from AFS today, AFS being a complementary company rather than competitor to HYD. Revenues are well ahead of expectations, though suspiciously they don't mention profits:


Extract:
"With greater global investments in water infrastructure, the Company benefited from increased investment in the municipality area (waste water, desalination and potable water) due to stricter restrictions and regulations being introduced worldwide"

"The Company plans to continue increasing its sales and marketing effort globally and believes that global investment in water filtration and treatment systems will continue to grow, driven by the tightening in environmental and public health standards, as well as rising demand for clean water, a scarce resource."

The negatives for AFS are the weak US dollar, which hasn't yet been a problem for HYD with relatively small US sales - though the dollar is now strengthening against the pound just as HYD's sales take off, which is all to the good - and higher raw material costs. HYD don't manufacture and I suppose would be able to pass the costs on given the must-have nature of their products, though again it seems raw material prices are about to turn or have turned.

[garth] 23/1/2008 12:10

Reckon they look a sound long term buy at these levels Rivaldo - with the cash adding considerable comfort.

Surprised GNG haven't responded more strongly to yesterday's outstanding news.

G.

[rivaldo] 23/1/2008 12:08

Onwards and upwards from now on hopefully. I'm quite pleased with how HYD has performed in recent weeks given the markets given its illiquidity. Bodes well I think.

HYD is on a 2008 P/E of just 11.9 on 12.85p EPS. It pays a nice 2.5p divi. And it now has probably £3.5m cash against a £22m m/cap.

Strip out the cash and it's probably on a P/E of around 9.5. And yes, HYD is in a sweet spot - after all, it's just won the largest grit-removal from wastewater contract in its history.

Put HYD on a decent current year P/E of 15 (note, not a forward P/E), which a stock like this with global reach and cash should merit even in poor markets, and it would be priced at around 200p.

Add in the likelihood of further acquisitions (or indeed predatory approaches for HYD itself) and the prospects, short or long-term, look pretty decent imho.

[garth] 23/1/2008 11:21

o/t
Guys, DYS bouncing fast and on about 8x forecast earnings now. False market has been created. Can only buy on phone.

DYOR!

G.

[williebiz] 21/1/2008 22:06

Hey thanks Stegs, that's a real compliment coming from you LOL :-)

[sg31] 21/1/2008 21:53

Shy News....It could catch on.

[williebiz] 21/1/2008 21:50

Hey! Good luck to you too and hope it's never cheap enough for me to buy.

BTW Sir Edmund Hilary getting buried right now. He was one of a kind. Tune into Shy News for the actual interment.

[williebiz] 21/1/2008 21:45

No, not shorting it. Always been interested in the story but not at a rich valuation. Now looks like it'll be affordable soon and I'll be joining you in a few days.

[sg31] 21/1/2008 21:44

I thought you never disclosed your shareholdings

[gac100] 21/1/2008 21:43

williebiz, you're having a laugh. I haven't seen it hyped. Its just a very solid company with unimpeachable fundamentals, a forecast p/e of 12.1, bags of cash, and excellent newsflow. Are you shorting it!!!

[williebiz] 21/1/2008 21:37

Oh, never afraid to admit mistakes. Some BARC @ 700p. Some RBS @ 460p. Some IMP @ 200p.

Been looking at HYD for the last year and have considered it overvalued all along. I guess I'd have got interested if we'd got down to 140p earlier on (March/April 2007) but now I reckon we're looking at 120p so might as well wait for that.