Hydrodec Share Discussion Threads

[capricious] 30/9/2014 09:51

As far as I can see, the OSS deal has added a goodly boost to the EBITDA. It's a competitive market with small margins, but if they execute their plans to move towards transformer and baseoils, the growth potential is good.

As for surprises, I don't know whether you mean unforeseen costs or having to find more funds for expansion. I'm pretty confident the first is not about to appear with the experience of the board, the second I hope will not be needed, but always a possibility. Capex for growth is ok, and a healthy business should be able to use debt as a vehicle rather than share dilution.

[bdroop] 30/9/2014 08:39

Rightly or wrongly I topped up some more this morning. I feel confident about the insurance claim due to the credibility and strength of management. I suppose my current niggle about the growth potential for the share price is whether there might be any nasty surprises held within the OSS acquisition. I'm interested to hear if anyone has any views on that? Warm regds to all.

[vitamal] 25/9/2014 11:42

Why is share price so down? Any views.Director taking a personal loss to maximise long term gain in his pension fund - surely in the expectation of good times aheadThat's my theory anyway

[capricious] 23/9/2014 09:26

Good post Kattatogaru

[kattatogaru] 22/9/2014 11:33

We're finally getting a clearer picture of the insurance claim and progress against it:
1) from final results RNS 22nd May: "As at 31 December 2013 the Group has estimated a total impairment and write-off of assets of US$7.2 million for which it has created a corresponding receivable due from the insurers.",
2) Trading update RNS of 29th July: "The estimated business interruption coverage represents margin forgone, based on estimated lost sales of US$10.9 million, net of direct costs and insurance policy deductible."
I assume therefore that the total insurance claim is of ca. 18 million, of which 12 million have been agreed (as per latest update). I also assume that the unpaid insurance relates to lost income not assets, therefore insurance has only covered ca 5M of the 10.9M lost business - which is roughly the estimate for December 2013 and H1 2014.
Hopefully the payout will be completed by end of year.

[luminoso] 22/9/2014 08:31

As usual the market sells the news !

[luminoso] 22/9/2014 07:08

Insurance claim progressing well, then. Good news this morning.

[mortimer7] 15/9/2014 15:47

Agree with Iankn73, this is a great opportunity at this level.

In the 29 July interims Ian Smale stated:-
"We expect to move on significantly in the second half of the year delivering a series of milestones that will continue to build our unique renewable oil proposition."

[luminoso] 12/9/2014 10:07

Had a few more myself as it may not stay long at these levels.

[dirty75] 05/9/2014 21:03

Board normally wade in sub 11

[timmy11] 05/9/2014 09:36

900k buy and share price doesnt move up!!

[iankn73] 04/9/2014 21:17

This should move as soon the insurance claim is settled. In the meantime just look upon it as an opportunity to top up at these silly prices.

Good luck

[luminoso] 21/8/2014 16:58

True. There is that.

[iankn73] 21/8/2014 16:19

The longer it takes the better for the time being, as I can keep snapping them up as and when I can at these prices. :-)

[luminoso] 21/8/2014 11:30

This insurance payment is taking its time. The market seems to be waiting on that.

[squintyflinty] 21/8/2014 09:28

The 10.975 are buys NOT sells as advfn are noting!

[capricious] 16/8/2014 08:57

New process models

hxxp://www.hydrodec.com/download/pdf/press-release/skids-update-15-aug-2014.pdf

[euclid5] 01/8/2014 17:34

recall a/cs show $18m cash as at end of June 14

[squintyflinty] 01/8/2014 14:29

Great interview the prospects are fantastic.

[capricious] 01/8/2014 14:06

I wouldn't think another placing was necessarily top of the list, some form of debt financing on plant and future profitability, including hopefully partner contribution? Who knows CEP might want in, especially if plans are to push into other regions.

The figures stack up at recovery rates near 70%, but imagine the extra value gained from 85-90%.

[luminoso] 01/8/2014 13:49

Thought this news would have had more effect on the share price Seems like the Insurance payment finalisation is still the missing catalyst.

[mortimer7] 01/8/2014 11:36

Interview with Ian Smale commenting on todays news
hxxp://t.co/pdykRyaRVg

[euclid5] 01/8/2014 10:34

swiped from LSE board

Hydrodec bounces back
TIP UPDATE
Hydrodec Group PLC (HYR)
SPECULATIVE
HIGH RISK

Our previous tip
WE SAIDBuy
WHEN13 February 2014
PRICE10.6p
TIP PERFORMANCE TO DATE+13%
Shares in Hydrodec (HYR) jumped 10 per cent after the used-oil recycling group made cash profits - so-called 'ebitda' - for the first time since the company was formed in 2001. True, after amortisation of intangibles and depreciation, employee-benefit expenses and some exceptional costs were accounted for, profit of $0.5m turned to a loss of $3.2m, nevertheless it represents encouraging progress.

Another cause for optimism is that the company reiterated guidance that, following an explosion at an oil re-refining plant in Canton, Ohio last year, the plant should be back up and running in the fourth quarter with two trains. A further four trains are expected to be on-line in first-quarter 2015.

IC VIEW:
Clearly, there is still work to do to transform Hydrodec into a really profitable company. But the business has massive growth potential and we're encouraged by directors spending nearly £500,000 buying shares in June following recent share price weakness. At 12p, we reiterate our advice (Buy, 10.6p, 13 Feb 2014). Speculative buy.

Last IC view: Buy, 12.6p, 19 June 2014