Hydrodec Share Discussion Threads

[euclid5] 19/4/2013 09:01

yes but hasn't done anything to raise the share price

[dirty75] 18/4/2013 22:17

Great web cast on HYR website, worth listening to.

[capricious] 18/4/2013 18:07

It hadn't arrived in my inbox, but as was the case last time, they were only a couple of days behind hydrodec's release, so I checked the edison site.

Without the culs this would be flying.

With the deal they are nicely cashed up for this expansion as well as ongoing expansion strategies, but there are few other (excluding US) likely revenue streams that will come online before the CUL redemption. We might see something from industrial oils, but from pilot to full operation, there isn't enough time before the deadline.

I'm confident they can be generating enough cash to get a funding line, especially as they are currently paying an 8% coupon.

The only problem is that it doesn't leave any money on the table for any new JVs.

I imagine there will be a combination, i.e. share offering at a better level than we see today, and a less dilutive loan. It's even possible they can get a grant, now that they have joined with G&S. The current US administration is throwing money at companies that just don't stack up as long term viable businesses, in stark contrast to Hydrodec that provides a compelling reason for support... unfortunately the industry they are in, probably makes it politically difficult.

[mortimer7] 18/4/2013 17:02

So the share price has gone back to Monday/Tuesday level thus negating the small uplift from the RNS.
I really hope the Edison note was not digested by the market in time to have affected todays price & hope there is some recovery tomorrow.

[capricious] 18/4/2013 16:57

They've reduced the discount risk with the progress so far and secured funding for the US expansion. Basically as progress moves to reality (and funding is identified) the discount is reduced and valuations ultimately go up.


To me it seems a very good read, and if it were any other share the share price would've reacted accordingly.

By 2015 revenues are pegged at nearly $70 million. Obviously this is now shared but the royalties on license fees come in higher at around $2.75m. Although full operating profitability is not expected until 2015, it leaps to nearly $7m from a loss of $(1m) in 2014.

Culs remain a serious drag, I recall Hydrodec mentioning that they have been offered alternate methods of funding, but have no idea what that means.

[vitamal] 18/4/2013 16:43

Edison have issued an update with a valuation of 12.5 rising to 16.4 as the discount for executional risk is reduced

Not sure what that means, but I am sure someone can explain

[capricious] 18/4/2013 16:32

Edison have released their note

[capricious] 18/4/2013 14:56

Thanks lalond

[lalond] 18/4/2013 14:21

A new audio interview has been posted on the Webcasts and Interviews section of the Hydrodec website - with Ian Smale, CEO of Hydrodec and George Newmark, Vice-President, G&S Technologies.

[capricious] 18/4/2013 10:52

Although I didn't expect much movement on the share price until progress is realised by real world activity, but the continued weakness is out of place to the upside.

I assume the funding requirements, i.e. at what cost to the company and holders, needs to be resolved before true impacts can be valued.

From RNS
-- Both parties will provide or procure the capital funding required to build out the additional trains in equal measure, irrespective of their ownership interests at the relevant time. The total cost of the additional capital investment is expected to be approximately US$15 million, subject to further detailed analysis. Hydrodec expects to fund its share from the proceeds of sale and its own funds. The location of the additional trains is to be determined between the parties following a detailed market review but will likely include a future expansion at Canton, and at least one new facility to widen geographic reach.


Is that total capital across the JV or on the Hydrodec side. A new plant would probably start at $15 million and move quickly upwards, so not sure the breakdown on the figures

[sueyou1] 18/4/2013 09:16

Hydrodec Group Plc Rating Reiterated by Numis Securities Ltd (HYR)

April 18, 2013

Hydrodec Group Plc (LON: HYR)'s stock had its "under review" rating reaffirmed by Numis Securities Ltd in a research note issued on Wednesday, Stock Ratings Network.com reports.

Hydrodec Group Plc (LON: HYR) traded up 4.94% on Wednesday, hitting GBX 11.15. Hydrodec Group Plc has a 1-year low of GBX 8.20 and a 1-year high of GBX 14.50. The stock's 50-day moving average is currently GBX 10.03.

Hydrodec Group plc (LON: HYR) is engaged in the commercialization of the Hydrodec technology, which is a technology for the re-refining of used transformer oil into new SUPERfine oil.

[dirty75] 17/4/2013 15:35

let's see what Eddisons say, they were effectively reserving judgement on an indicative val for FY2013.

"Irons"

[capricious] 17/4/2013 12:00

This weeks Lube report snippet

"Sources said buyer interest for heavy vis neutrals was particularly buoyant, while demand for light and mid vis oils was not as hardy. On the naphthenic side, however, interest was robust for most all grades, but particularly strong for light and heavy vis cuts."

[capricious] 17/4/2013 11:12

lol dirty, hope you get your results, but I've just check who they are playing!

And the lol wasn't a scoff at their chances.

[capricious] 17/4/2013 11:07

sp movement is underwhelming, but I didn't expect it to move much at least initially. We had the small spike up and then the retrace, I would expect a slower move to the same level.

[dirty75] 17/4/2013 11:07

institutions will start being somewhat more interested now there is a decent scale going forward. This is the kind of deal HYR should role out in other regions.

Happy start to the day, now all I need is West Ham to win tonight for a great day.

[capricious] 17/4/2013 10:50

Not including the favourable pricing for PCB feedstock, I wonder what the feedstock pricing equation will be between the two partners. There's a boost to utilisation, but will margins see an improvement or be cost neutral.


Missed this in the RNS
-- The parties shall agree a joint procurement strategy for feedstock; the Company will remain able to procure from other third parties. An arms' length pricing mechanism for feedstock procured from G&S has been agreed by reference to prevailing market pricing.

[capricious] 17/4/2013 09:55

They have licenses to process PCB material, the JV seems like a great synergy. Relatively small quantities of PCB contaminated oil is processed, around 11 million gallons a year in the US, so getting sufficient feedstock supplies is key, hopefully this has now become a little easier.

G&S can handle PCB at any level, Transformer Tech to 499ppm

[capricious] 17/4/2013 09:49

Checked in late this morning, nice surprise.

Excellent news, excellent work by all. There's now a clear trend, when the company have announced new strategies or deals etc, they have delivered and often ahead of time. Ok some may point to the Mexico shipping problems, but sometimes when opening up new markets, it doesn't always go to plan.

The JV venture is in line with the maturing re-refining industry and the changing dynamic to higher quality base oils. Collectors and re-refiners in order to protect long term business (and survive), are seeking each other out.

Interestingly, I thought the doubling in capacity was specifically at Canton, but now understand this can include another site. This is great, although obviously more capital intensive, strategically it is much better.

And we still have some big news items

Australian Grant - Pilot Plant
Confirmation of new base oil applications
Unfcc methodology accreditation (although with the collapse in the carbon market, the monetary aspect may not be as good, it's more the added value of the moniker of being carbon neutral)

[sueyou1] 17/4/2013 09:46

Great news! Saves HYR raising loads of cash for the USA!

100% of 27m litres vs 50% of 65m liters WITH a guaranteed supply at little extra cost to HYR.

[deeppockets] 17/4/2013 07:20

This looks like a fantastic announcement.

[pinkalltheway] 12/4/2013 20:05

These stocks just are not brokered to clients... Thanks the FSA/FCA or whatever they call themselves this week.." you cant buy these doesn't fit client profile" we will fine you..etc brokers are scared to talk these stocks.. Bad/sad but true.

[mortimer7] 12/4/2013 17:45

Another tick down in the share price today and nothing but sellers.
It's a bit frustrating holding & wondering why the sellers aren't.

[adventurous] 12/4/2013 16:19

You mean 11p although his average buy is approx. 10p