Hydrodec Investors - HYR

Hydrodec Investors - HYR

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Stock Name Stock Symbol Market Stock Type
Hydrodec Group Plc HYR London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
0.00 0.0% 3.25 01:00:00
Open Price Low Price High Price Close Price Previous Close
3.25 3.25
more quote information »
Industry Sector

Top Investor Posts

123gmtrader: I can certainly see both sides here. First off, the Bear side. Hydrodec was formed years ago and has failed to become a profit making company, always offering jam tomorrow. A good example of jam tomorrow is the Australian plant. The board had suggested it would of been sold earlier in the year but we are still waiting. It has cost a lot more than expected in the last 6 months and there are still decommissioning and associated costs which are unclosed and then the priced quoted is going to be $0.6m less than expected. Will the royalties make up the difference? Finance has always been tight with the company with a hefty dilution last year. It is possible that HYR will continue to plod along always failing to not quite hit the figures due to some unforseen circumstance. The Bull side. To understand HYR you need to know the history of the company. HYR started back in 1992 under the company name CSIRO with the intention of removing PCBs from naphthenic oils. PCBs are known to cause cancer. In 2001 HYR was formed and in 2004 was listed on AIM. The first plant was built in Australia in 2006 and Canton (USA) was built in 2008. In 2011,HYR formed an alliance with a Japanese company called Kobelco, where they would use Hydrodec's technology to remove PCBs from from Transformer oils within Japan. In 2012 there was a massive earthquake just off the coast of Japan causing a tsunami which in turn caused massive destruction within the country. This is where HYR started it's troubles imo. In 2013 HYR bought up the OSS group after spending time looking for a European base. HYR now had positions in Europe, America, Australia and Japan. In December 2013, the American plant, Canton was put out of action due to a fire. It would be almost 2 years before the plant is back to full operations. In 2014 HYR's allance in Japan was ceased due to stricter laws on holding contaminated products. These laws came about because the damage and pollution caused from the earthquake in 2012. Also in 2014, was the start of the crash of the price of oil. In 2015, HYR bought ECO oil, which would be used to supply Hydrodec's plant, OSS. In 2016, HYR sold off hydrodec UK to A Black for £1. In 2016, HYR had Carbon Credits(CC)approved. In 2017, HYR sold it's first CCs and further patented it's technology. In 2018, HYR further patented it's technology for Europe. HYR also did a equity raise for £11.2m Investor talk of jam tomorrow and it can look like that but the fact is, HYR over stretched themselves, trying to run in too many continents before they could walk. So when and earthquake hit, followed by a fire and the the Oil crash, Hydrodec, who had not yet become profitable, was financially in trouble. The last few years the company was in dire straits financially and I believe most private investors did not understand how badly the company was. Chris Ellis was appointed interim CEO with the main job of keeping the company alive, primarily by reducing costs. Head office workers were reduced to a bare minimum as well as BOD with the company reduced to only 2 full time bod and 3 NE BOD. The placing last year saved the company, reducing debt and giving it some cash to allow increased purchases of feedstock. The company is now basically down to one plant, Canton, which is better placed to grow. The Australian plant has been a drain on cash and though HYR have taken longer to sell than anticipated and getting a lower price, the company will be financially better off with it gone. There is also talk of using Hydrodec's technology with Slickers (formerly Hydrodec UK. There is considerable holdings by the BOD and iis. Small profits from CCs but the benefit far out ways the cash. These can be used to offset other companies pollution and entice them to use cleaner oil in a world that is starting to see greater recycling needs. The company, having reduced the debt, has cash to use to help buy larger amounts of feedstock and its the feedstock, or lack of it, that has been a big issue. If they can increase the feedstock supply, by having greater cash available, the use of CCs and also by creating closed loop contracts then Canton will be able to increase it's utilisation rates. At a 70% rate, there is just a 35% cash return, but at 90% it rises all the way to 90% cash return on investment. There has also been talk of adding another train to Canton from the proceeds of the AUS plant. Due to the companies unique product which is protected in the US and Europe via Patent, there is going to be an increase of up to 50% in the retail price of the transformer oil. I really could go on and on, but to sum it up, HYR over expanded too quickly and when a series of events happened the company almost finished. Now with AUS plant almost gone, HYR are back to basics and can concentrate purely on the US. If only they had done that to start with! So what it all boils down to now is, can they procure enough feedstock?
capricious: The same 75p so currently investors can get in cheaper than offer.
capricious: I think the final split was meant to eventually reach 48ish-50ish, if not simply 49-50. I may have misremembered the numbers. Regarding the feedstock isssue. Historically, there are long lasting factors that meant obtaining supplies is not straightforward but with the improving market, it’s now obvious Hydrodec’s cash position has been a major block. G&S has a reasonably large footprint, seemed strange that they couldn’t fulfill the original contractual estimates. During the crude crash yes but now, not so likely. For new investors it looks much better, pretty dire for existing ones, at least in terms of the next few years. I imagine if all goes as planned, and they make a profit, someone will buy it up... before the previous holders get back anywhere near the lost value. It does also bring me back to the more unusual way that Mr Black’s holding were recently used as a debt vehicle. Normally a man of his position would be able to raise debt in any manner but this way, the cash is given based on his holdings at the time. Mr Black has been a life saver, and kept the company from going under, more than once but the disappointment mixed with the good news, does niggle my cynical bone. The dividend is something of a sop but I suspect it’s still based on real forward (optimistic) projections. I’d like much more flesh on the details around Slicker collaboration, including the IP research. These things sound good but can absorb a lot of money, without putting anything back in the pocket. I’d also like actual projections on the likely increased feedstock. If they’ve identified sources, or future sources, there must be some numbers sitting on a spreadsheet.
yump: Why haven't they mentioned an issue with working capital and the feedstock situation before ? Seems to me that would, of all the various problems, be one that existing investors would appreciate if it led to the need for fund-raising. If they've only just realised or accepted its a problem it doesn't say much for their basic management abilities. If they've said it just to help justify the fund-raising then there's no hope imo.
truffle: Read my post 4551 Investors have suffered huge losses here over the years. Enough said.
tonytyke2: Good point, but IMO possibly this could be perceived to be misleading investors here somewhat. I was thinking forced seller/sellers possibly...? but the share price seems to have gone too far down now and taken out all the recent traders/investors? Even today 7m v 4m & down 6.8%....... What do you think?
1savvyinvestor: Personally speaking I am relatively new to HYR. I bought in back in October as indeed I was alerted through twitter to its potential. While Twitter does tend to get rampy or indeed derampy there are a lot of new people looking at HYR and doing good research. Investors who have been here for years will be tired of the abysmal share price performance historically but I do believe that recent interest is due to some fundamental changes in the business and its ability to grow from here. Aviva are gone and that massive overhang is dealt with. Oil prices are much higher and this should underpin the business. They do have to resolve he feedstock issue though. I'm now planning to be a long term holder and am sincerely hoping I have got on board just as the corner is being turned. GLA
tonytyke2: Could be that some of the more recent traders/short term investors have been selling into the company update due on Monday. I have bought more recently and sold none and IMO, I can only see significant future share price gains here, just need a little patience. I would expect Investors Chronicle to start picking up on the expected good news next week and circulating the news soon. GLA TT
basem1: Kingkong has obviously not done any research, not that I'm surprised, aim investors normally follow the herd. Ppg is an absolute no brainer !!!!
hootza616: Excuse my ignorance but why does Aviva dropping out provide for such good news? I thought major investors dumping stock usually sent share price south.
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