Hydro Intl Share Discussion Threads

[traderabc] 23/5/2008 12:52

Masurenguy,Thank you very much for your opinion.

[masurenguy] 23/5/2008 12:48

I think you'll find that it is Hyflux Ltd who are building a plant in Algeria.

[traderabc] 23/5/2008 12:33

I'm looking to buy into this company,does anyone here have any idea who they are ? Any sugestions appreciated.

Commodity investor Jim Rogers has said that on his trips around the world he has seen numerous cities and communities that were abandoned anciently. He said they collapsed because they did not have the one commodity necessary to maintain stability: Water. While raw materials rise and fall along with supply and demand and in many instances can be substituted, clean water is unique and will always be in demand.

Our first pick is a water treatment company headquartered in Singapore with sales worldwide. Currently, they earn 80% of their revenue from work in polluted, mainland China, cleaning both municipal and industrial waste water. The municipal and industrial segments produce equal amounts of revenue for the company. The company also builds desalination plants and runs them. This work is sought after in desert regions like the Middle East and North Africa. They also do business in India and Indonesia.

Recently the company won a contract to build the world's largest desalinization plant. The project will be in North Africa. The company will complete the plant in three years and has the contract to run it for 25 years thereafter. This order pushed the company's order book to over $1 billion dollars or to about 5 years worth of business. Without anymore orders, they will be busy for many years to come.

US$1.3 billion in market cap, dividend paid is twice what it was in 2003, but yield is slight at 0.5%. Since 2005, the high, and life-time high, was S$4.88 in July of 2005 and low was S$2.06 in August of 2006. Today the stock trades near S$3.70 or ~US$2.70.

[rivaldo] 23/5/2008 08:48

Nice one Mas. Much the same here from another fund manager, this time specifically mentioning water purification:



"The Daily interview: Cukic-Munro favours water stocks
By Sara Smith | 00:01:00 | 23 May 2008

Insight's multi-asset manager Ana Cukic-Munro says she is looking at water companies to power returns.

Cukic-Munro (pictured), co-head of Insight's multi-asset group alongside Patrick Armstrong, is responsible for overseeing portfolio construction for the diversified fund range.

The manager said she is confident that governments will keep investing in water despite the global slowdown because water is an essential requirement whether there is a recession or not.

'Only 0.01% of water is easily accessible. Last year was the first year in history where there were more people living in the cities than in the country and these areas are harder to get water to. The demand for water is steadily increasing and governments have no choice but to meet this need,' she said.

Last year more than £150 billion was raised by water infrastructure funds so clearly any company investing in water purification or production is going to be a winner, she said."

[masurenguy] 22/5/2008 18:30

Joe Schoendorf, Accel Partners.


Water tech will replace global warming as a global priority. The world is running our of usable water and will kill millions more in our lifetime than global warming. Darfur could go down as the first water war of the 21st century. And with 2 million deaths, might not make the top 10 list. One billion of 6 billion people do not have healthy water. We're losing close to 1 million people a year under 5 years old due to dirty water. Imagine a 60 year drought in this state. Within 15 years, will be up to 3 billion people with a water problem. 70% of water used for agriculture; 90% for developed countries. If nano technology can work, and can figure out desalinization, can prevent many wars over the next 30 years. Missing the Al Gore for water. Vinod Khosla, Khosla Ventures agrees it is important, but not that it is more important than global warming. Global warming is causal, Khosla says. In 25-30 years, will be rarer commodity than oil, and more valuable. Khosla says he is invested in two water companies, and looking for more. Schoendorf notes that T. Boone Pickens is selling oil companies and buying water companies.

[rivaldo] 22/5/2008 12:39

Yep, all progressing nicely. Not much more to be said!

Anyone prepared to wait happily for the business drivers mentioned in the AGM statement to gather pace will imo be well rewarded here. Meanwhile HYD should continue to grow both both organically and with the occasional acquisition (Vexamus, Eutek etc).

As an aside in relation to the $12 billion of Australian water sector expenditure mentioned earlier, I should clarify that Rocla are an Australian distributor of HYD's products.

Come on Peel Hunt, let's see this new bleedin' broker note then.

[gac100] 22/5/2008 12:09

AGM statement



All well. Good start to year. Acquisition integration progressing as planned. Further progress expected in 2008.

[charlie] 21/5/2008 18:25

Well who would have guessed. Hydro diversifies into pop & movie production!



Best to save the the Gritman movie to your hard disk, then watch at leisure (about 10 mins). Warning, the file is 163 MB, but I promise you it's worth it. It's almost worth the $8m paid for the business!!

[rivaldo] 21/5/2008 08:01

From Impax's statement last week - interesting about the $12 billion of Australian expenditure:



"In the Water Treatment & Pollution Control sector, Spain's government
unveiled new measures to relieve the impact of the driest winter in
memory, including diverting water between regions to reach 2.5m
people in the southeast. As Australia tries to recover from its
worst drought on record, the government announced that US$12 billion
will be spent over the next 10 years to improve water productivity
and efficiency of use, and to ensure supply in the face of climate
change."

[rivaldo] 20/5/2008 07:43

News about the launch of HYD's commercial rainwater harvesting system - nice cost savings. Payback in two years is a great headline.....

Looks like KBC have top-sliced 125k shares - they must have been placed easily with a single buyer as the price has been firm.

Here's the article:



"Published on 19 - May - 2008

StormBank Pro offer rainwater harvesting for commercial applications

Hydro International promise mains water savings of 40% and payback in as little as two years with their new StormBank Pro Advanced Rainwater Harvesting system for commercial and public buildings.

Installing StormBank Pro at Prestatyn School

The new launch for commercial applications follows the successful introduction of Hydro International's StormBank domestic rainwater harvesting system last year.

The system works by using collected rainwater instead of expensive treated drinking water in a range of applications from toilet flushing and garden watering to vehicle and yard washdown.

The Hydro StormBank Pro is available in three sizes to cover roof areas less than 300sq m, between 300sq m and 750sq m and for developments with roof areas above 750 m2. Each system comprises a storage tank, water filter and control panel offering easy installation and minimal maintenance.

The largest commercial StormBank Pro system can be computer connected to the building's management system. All StormBank systems have mains water back up for occasions when rainwater runs low.

"Rainwater Harvesting is rapidly becoming accepted as a desirable feature of sustainable buildings," said Director of Stormwater for Hydro International Alex Stephenson. "Commercial rainwater harvesting systems need to be designed to meet the individual needs of the user, and it's important to consider design issues at an early stage. Hydro offers a comprehensive design and advisory service on rainwater harvesting to ensure water saving opportunities are maximised for each building."

"Rainwater harvesting has a demonstrable payback and many installations will pay for themselves in just a few years. On larger commercial applications it can be possible to achieve quantity savings on mains water in the order of 35-40% with commensurate savings on commercial water rates.

"Rainwater harvesting also helps meet planning consent for developments by controlling stormwater discharge to the mains, and thus helps reduce the flood risk of storm water runoff from hard surface developments," he added."

[rivaldo] 18/5/2008 07:41

Good news from the USA:



"Washington State Approves Hydro International's Up-Flo Filter for 'Pilot Use' - Stormwater Filtration Device Achieves Significant Milestone in State Known for Stringent Environmental Regulations
15-May-2008

Hydro International, today announced that the Washington State Department of Ecology (DOE) has approved Hydro's Up-Flo™ Filter for a "Pilot Use Level Designation" in stormwater projects.

The State designated the Up-Flo for pilot use in the stand-alone treatment of stormwater flows. The Up-Flo Filter is approved for use to treat flow rates of 22.7 gpm per square foot of filter surface area. Four different media types have been approved for use, including sand, perlite, Hydro's CPZ Mix™, a blend of carbon, peat and zeolite, and Hydro's CPS Mix™, a blend of carbon peat and sand.

The Up-Flo Filter is a high-rate stormwater filtration technology that removes trash, sediments, nutrients, metals and hydrocarbons from stormwater runoff. As the industry's only fluidized bed upflow filtration technology, the Up-Flo Filter provides a higher level of treatment, a higher rate of filtration, longer life of filter media and a longer maintenance cycle than other filter systems.

The Washington State Department of Ecology oversees all efforts in the state to prevent pollution, clean up pollution, and support sustainable communities and natural resources. Many other states and municipalities across the country follow Washington State DOE approval guidelines when authorizing the use of equipment in stormwater treatment projects.

"We're thrilled to receive this designation from the Washington DOE, which is known as one of the most diligent regulatory agencies in the nation," said David Mongeau, General Manager of Hydro's U.S. Stormwater Division. "This important first step reflects the level of confidence both public and private water quality experts continue to exhibit in the Up-Flo's performance and reliability.""

[nhb] 12/5/2008 13:14

That's just disrespectful. :-((

[gac100] 12/5/2008 11:31

[edit: asparks post 2213] er, check out riv's post 2212 - it would be par for the course for HYD, not at all unusual

[rivaldo] 12/5/2008 11:30

I was right (see post 2212)! Someone got mugged by the MMs into selling 4,500 shares at 158p. The seller either has a very poor broker or is desperate for cash. Watch the price get similarly marked up on any demand - as per over the last few weeks.

[asparks] 12/5/2008 11:15

why the drop?

[rivaldo] 12/5/2008 10:36

You have to laugh. Later we'll probably get a sell reported of 3k shares or something similar! Volatile or what.

Even on out of date forecasts of 12.9p EPS this year HYD is looking tremendous value now imho.

[rivaldo] 09/5/2008 12:49

Hi SS, glad you agree :o))

A long and short-term buy imho. Once Peel Hunt finally get their note out and the market has something to get its teeth into maybe we'll see an appropriate re-rating.

[stockscreeners] 09/5/2008 10:20

looks rather cheap at the moment and the warning about flooding and its increasing impact on G Britain should see these has a excelent long term stock to buy and hold imho.

good to see you resident here rivaldo.

regards SS

[rivaldo] 08/5/2008 07:15

Nice recommendation from GCI yesterday:



"Companies: HYD
07/05/2008

Water control and treatment products venture Hydro International has cheered investors with an astute acquisition.

The company, which supplies innovative products and systems for controlling and treating storm water and wastewater, has acquired Eutek Systems in a transaction capped at US$13.5m (£6.9m).

Providing equipment that removes grit, sugar sands and abrasives from wastewater streams, Oregon-based Eutek brings a complementary product range to Hydro and, according to chief executive Steve Hides, the deal represents a perfect fit, 'giving us expanded market share in the US, a West Coast base of operations and product technologies that complement our existing wastewater grit-removal portfolio.'

Analysts say the market for grit-removal systems is expanding on the back of requirements to upgrade and replace ageing equipment, as well as rising demand for more efficient systems to remove grit from wastewater flows.

Accompanying the deal was news of Hydro's winning of a £1.6m contract to supply flow control devices as part of a £50m flood prevention scheme for homes and businesses in Glasgow.

In February, Hydro announced record annual results for 2007, driven by organic growth from its core storm water and wastewater related products. Sales rose by 16% to a shade under £26m, pre-tax profits increased to £2.5m (2006: £1.83m) and cash balances grew by a considerable £2.2m to £4.85m. From earnings of 12.47p (2006: 9.7p), investors were treated to a 22% hike in the dividend to 2.8p.

Delivering profitable growth and with market fundamentals strong, Hydro, trading on a historic earnings multiple of less than 14 times, looks unfairly overlooked."

[rivaldo] 07/5/2008 14:45

The flood report in gac's post is all over today's telly and newspaper news.

This is extremely relevant:

"The nation's current flood defences are focused almost entirely on river and coastal flooding, but about two thirds of last summer's floods were caused by surface water, often following heavy rainfall."

There will have to be additional monies allocated to or legislation drafted to combat inadequate surface drainage systems. Already there is a law coming into force to make planning permission necessary to pave over front drives for example.

One of HYD's specialities is of course SUDS (sustainable urban drainage systems).

[rivaldo] 07/5/2008 12:23

Thx for that gac. Just a few of those would send HYD's turnover rocketing judging by yesterday's contract win.

Typical of HYD to hide (geddit) their light under a bushel.

Firstly they announce a major contract win the day after a Bank Holiday when many are still away from their desks in the City.

Then they announce an impressive acquisition - the first in a long time - on the same day so that its impact gets diluted. Some holders are probably even unaware of the acquisition having seen the news flag relating to the contract win RNS in the morning!

Come on Peel Hunt, time to get those new forecasts out.

[gac100] 07/5/2008 07:56

More grist to the mill:

"Hundreds of UK power substations and water treatment plants are potentially at risk from flooding, a confidential government study suggests ..."

[rivaldo] 07/5/2008 07:33

Good coverage in the Scotsman FYI - it hadn't sunk in before that HYD are working with McAlpine's. Should be good for further business:



"Water group secures new Glasgow flooding contract

HYDRO International, a water treatment group, has signed a £1.6 million contract to supply flow control devices to a flood prevention scheme in Glasgow.

The group will supply five of its Hydro-Brake flow control devices to Alfred McAlpine Capital Projects, the main contractors working for Glasgow City Council on the construction of three flood water storage sites.

The White Cart water flood prevention scheme is designed to protect 1,750 homes and businesses in Glasgow.

Hydro's devices, which are due to be delivered next year, will be used to control the discharge from dams, built to form flood-water storage pools.

The largest of Hydro's units will weigh 60 tonnes and will measure almost six metres in height.

The group yesterday announced that it had acquired Eutek, a company that makes equipment for removing fine grit, sugar sands, abrasives and fixed solids from wastewater. Eutek will be integrated into Hydro's business in the United States.

Hydro, which is listed on Aim with a market cap of about £24m, has its UK office in Clevedon and also operates in Canada and Ireland."

[rivaldo] 06/5/2008 16:01

Nice 10k buy just reported - I assume it's delayed from earlier on.