Hydrodec Share Discussion Threads

[euclid5] 06/9/2013 17:29

"It provides a platform to import Hydrodec's SUPERFINE(TM) for sale in the UK together with a capability to collect used transformer oil from the UK power companies and overseas;

-- It will underpin the development of Hydrodec's new lubricants technology in the UK;
-- Once Hydrodec's new technology has been deployed in the UK, it offers the potential to provide over 60 million litres per annum of feedstock which the Group intends to re-refine into a high grade lubricant base oil; and

-- It provides a platform to develop other opportunities to consolidate the oil collection and re-refining market in the UK and Europe"

[themariner] 06/9/2013 17:16

Indeed. Although the balance sheet issue is not necessarily resolved, I think it is very much WIP. This cracking deal should see them to EBITDA profitability sooner as well as further strengthening and de-risking them.

So much for those who thought AB was no longer supportive or trying to buy them cheaply. Nothing but further support as I see it. I was tracking the share price with a view to a top up but in the end was happy to do so this afternoon at 9.25p.

Short could now be squeezed or could just exit gracefully? Anything under 10p is a massive bargain, IMHO

[stevedd] 06/9/2013 16:00

Will be interesting to see what happens with the short positions now.

[callumross] 06/9/2013 15:41

Absolutely cracking deal at last!

[mortimer7] 06/9/2013 15:26

RNS issued 3pm
"Acquisition of the business and assets of OSS Group Limited"

[capricious] 06/9/2013 09:12

Like it, thanks Sue

[sueyou1] 05/9/2013 21:47

Scroll down and click the movers tab on Institutional Shareholders

[capricious] 05/9/2013 21:27

The fund added to the short on the 29th again, so as yet they haven't started to get out, or possibly they have but the data hasn't come through yet.

[sueyou1] 05/9/2013 20:47

Could just be bottom fishing, trouble is, nobody knows for sure whether this is the bottom or not yet. Rise back to 10p+ would indicate the seller has been squeezed out, I won't be counting any chickens before that happens.

[mortimer7] 05/9/2013 16:34

Well 2 days of relatively large transactional activity.
Share price up 0.50p. Something happening at last?

[capricious] 04/9/2013 10:44

The short must be costing money to keep it going, and there must be a point of diminishing returns.

[vitamal] 04/9/2013 10:40

Has the worm turned L2 looks a bit stronger

[mortimer7] 30/8/2013 12:15

themariner, thank you for your words of wisdom. It looks very much like things are in the balance for HYR. Let's hope it's not discounted equity.

[themariner] 30/8/2013 11:23

The main reasons as I see it for shorting such a small and illiquid stock would be if they were convinced the balance sheet issue has to be resolved by a discounted equity issue, or that they really believe the company is worth (on fundamentals), much less than say £35m. Uncertainty = a falling price - this is true of individual stocks as much as it is the wider market.

If the company do manage to raise fresh debt or resolve the balance sheet by other means than discounted equity, I recon the short seller will have to close out or be squeezed and the removal of this uncertainty will pave the way for the re-rating.

[capricious] 30/8/2013 10:44

I guess as a low volume aim share we are even more susceptible. Lets hope they close out the short some point soon

[themariner] 30/8/2013 10:37

Mortimer, If you bought this stock as a trade, you are right to be dissatisfied as the trade has, in the short or even medium term gone wrong. And in any case, when you bought, it was well known that the Company has issues to be resolved regarding it's balance sheet, so that would have been a poor trade. If, however you bought these an investment for the long term, then this is a minor issue that will work through, and we will either be proved right, or wrong, but in a rather different timescale.

I think Warren Buffet is often quoted when it comes to the ideal holding time for an investment - "forever".

I have been buying and will likely top up periodically precisely because the uncertainty is creating an opportunity to buy in at a level that however imperfectly, reflects this risk, in the belief that once resolved, the share price will then start to begin a process of re-rating (firstly to reflect new balance sheet strength, and next to reflect (and value) the (hopefully) coming EBITDA positive state of the company.

Don't get me wrong, in my experience companies like these can still remain "undervalued" and unloved for far longer than the fundamentals imply. Don't believe all the efficient market hypotheses hype: when it comes to companies on Aim and especially ISDX, the market is full of under (and over) valued situations. What you need is patience - in spades.

[mortimer7] 30/8/2013 10:18

I had high hopes when I bought in Feb, viewing the potential & positive news at the time with optimism. So I'm disappointed to see the share price drifting on downwards. I guess the drift can be partly attributable to SVM's short position which seems to have been open since early June & steadily increased since then.
I sincerely hope the company are doubling their efforts to counter this negative effect and we get some uplifting news soon.

[capricious] 21/8/2013 11:27

A very belated mention in lube report

www.imakenews.com/lng/e_article002766976.cfm?x=b11,0,w


I imagine the upward movement on prices will help improve Hydrodec's margins

www.imakenews.com/lng/e_article002766979.cfm?x=b11,0,w

[witheco] 19/8/2013 20:32

Sue,
Shorting plays an important role. It helps investors insure the risk of negative movements in share price A short seller is also exposed, to even more risk. Since, there is always an intention to perform in a stock market. I agree, with you, to some extennt if your ref. to naked short selling. Anyway, just shopping at the moment, and what scares me about this share is that its not making any profit. And the assets are not strong enough. Not going in the basket yet, 7p - may consider, technology/process and biz plan looks interesting.

[adventurous] 16/8/2013 11:23

boondocks - I think you need to read up on hedge funds. Not forgetting there are many types of investors, some short term, some long, some don't know, some do. The point being, because shares are being shorted, does not mean that a company is going under, for example ARM was shorted last year, from around £7 down to £4.60 if I recall, then went back up, touching £11, so based on your logic I guess there were a few City Pros who didn't get it right!

[dirty75] 16/8/2013 10:33

Thanks to whoever pointed out Mr Blacks increase in LBB, it's flying making up for HYR.

[boondocks] 16/8/2013 10:26

Thanks to all for putting me straight on that point. Here was I thinking the share price was more likely to go down than up. I now see that there is no basis to believe that. Just because a few City Pros think that 9p is a very good price to sell for, it doesn't mean they are right does it ?

[capricious] 16/8/2013 10:11

Good info thanks, the short is more likely the reason for the drop, not those sell numbers, especially as we've had equally or greater buy volumes, although it's difficult to see which is which as a lot are put under L or C, so don't match the current bid/ask numbers.

As a side note, another betfair investor has offloaded $10 million worth of shares. I'd assume Mr Black knows him well....