Hydrodec Share Discussion Threads

[pr100] 10/9/2018 10:43

No wonder they are now looking to diversify. The failure of Oz and the UK implies that the business is not scaleable anywhere, except possibly in the US. So as a one-trick pony subject to the vagaries of a single market, Hydrodec are in a potentially dangerous place.

Diversification is inevitable - but given the company's parlous cash position, it will come at a high price in terms of dilution…unless they get a lot more for the Oz operation than it appears to be worth.

[tonytyke2] 10/9/2018 08:47

Yep, pleased with that update with utilisation and EBITDA still improving at Canton.

[yump] 10/9/2018 08:44

Never know, might recoup some of my losses in 10 years. Why on earth did I even invest a penny in something that floated here on AIM, rather than somewhere else.

Why didn't I recognise the silliness of having operations in 3 countries miles apart, when the business wasn't profitable ? Who knows ! Must pay more attention to common sense.

More importantly wtf were they doing with the UK and OZ, when the basic business wasn't solid ?

Usual story of expansion with no fully profitable business model.

[1gw] 10/9/2018 08:17

Making us wait for the key points of the strategic review (apart from Australia sale/relocation) though. UK gone, Australia going. Andrew Black putting more money in.

Canton "operational EBITDA" does look very good for July and (expected) August. Is there enough potential there to leave something meaningful for current equity holders once the strategic review conclusion is announced?

[1savvyinvestor] 10/9/2018 07:35

A pretty good rns. Pleased to see Australia being shut down. It was a distraction from the main business . Strategic review out in a few weeks and utilisation and EBITDA now improving at Canton

[corrientes] 07/9/2018 16:04

Do something really controversial by going into oil exploration. That's more likely to boost the share price than anything else.

[1gw] 07/9/2018 15:17

Coming soon?

"We continue to develop our strategic plans for the Company, the results of which we intend to provide by the end of September. The focus of our considerations has been how best to both strengthen the balance sheet and address the growth options we see ahead of us.

We are making significant progress and look forward to updating shareholders further in September."

[1savvyinvestor] 22/8/2018 08:01

Nice rns but can't see any immediate benefit to share price all well and good having patents but we need people using the facilities!

[corrientes] 10/8/2018 08:30

ditto 1savvyinvestor

[tonytyke2] 08/8/2018 12:30

Thanks for the update 1savvyinvestor.

[1savvyinvestor] 07/8/2018 17:17

Had a long chat with a guy who is involved with HYR yesterday . It seems that Lord Moynihan is taking an ever increasing interest in the success of HYR. He has flown to the States several times recently and also to the Australia Plant. All options on the table for Australia including I presume divesting themselves of the operation. The strategic review is hugely significant to the future of HYR and there is obviously some excitement and enthusiasm around. They have no idea who has been selling. There is no obvious culprit!! No new CEO will be appointed until after the review is completed as it would be pointless appointing somebody who is not on board with any changes. All sounds pretty positive to me.

[corrientes] 07/8/2018 16:16

Well let's hope next month's announcement of their strategic review can sort out this long standing feedstock problem.

At least, I take a small crumb of comfort from not seeing too much of the 'difficult environment','challenging conditions' which means more of the same again.

[capricious] 06/8/2018 16:37

Lord Moynihan is a pretty solid guy, met him at one of the Hydrodec functions. He can connect with the US team and do everything that is needed at this stage. Also, it’s not like the team have done nothing for six years, whilst out of the blue, they continued to improve operationally.

Obviously longer term, and in an ideal world now, a full time CEO would be preferable but I imagine there is a cost saving. Cash is tight, if they can get one closed deal, this should improve things nicely, Time then to search for a replacement.

As output has been reduced by feedstock constraints, they have increased margins and improved quality. Any deal that adds to the output will have a significant impact... so everything hinges on those feedstock deals.

[corrientes] 06/8/2018 14:48

With his various political and business interests, you have to ask just how dedicated this particular Lord is to the company. These sort of individuals can get fees from just putting their name to an organisation (high profile in another sphere helps), giving it more credibility, but actually they do little or nothing, and have no real interest in a company's future.

Maybe this Lord is different ; who knows !

[truffle] 06/8/2018 13:10

Maybe it is time to question the management.
Lord Moynihan has been chairman for over 6 years and it has been a dreadful investment for anyone owning these shares.
The company as a whole has consistently under performed on his watch.
Time for a change.

[truffle] 06/8/2018 13:07

Maybe it is time to question the management.
Lord Moynihan has been chairman for over 6 years and the company has consistently under performed on his watch.

[tonytyke2] 03/8/2018 11:33

Agreed capricious

[capricious] 03/8/2018 11:26

But that isn’t anything new. I don’t want a fund raise but if there is one, it’ll be tied to a growth strategy.

Ideally you don’t seek one when your share price is this lows. I would much prefer they can show the market that US operations are cash generative at the central cost level. Given the low share price level, if they achieved the above, even a small move has a relatively large impact.

[trentendboy] 03/8/2018 11:06

The key is this statement

The focus of our considerations has been how best to both strengthen the balance sheet and address the growth options we see ahead of us.

- how do people on here think they will strengthen the balance sheet?

One would imagine that it would involve discounted fundraising or rights issue (unlikely) which means serious dilution.

Would odd not to wait until they get that funding away - the key is at what price. A significant discount to today's price would seem the most likely

[capricious] 03/8/2018 10:25

To my mind explains why we had a consistent seller recently, seems likely they got wind of something. With that said, I don’t actually see this as being a bad RNS.

My estimates are that operationally, they needed around another 1.5 million to cover central costs. The increased feedstock is encouraging, as that is the only thing holding them back. US operations look good.

I posted before that closed loop is the way to go, I think the recent transformer oil accreditation, plus the carbon credits, has unlocked negotiations with utilities. Otherwise without that logic, it begs the question why there hasn’t been many to date.

Australia has always been limited, the geography, the disparate market, don’t offer much in the way of growth potential. The move reduced cost but if it’s a drain on the main growth area, sell it, some license deal, or simply close it. There was a major supply agreement but that was delayed, will need to find out the status of that.

[tonytyke2] 03/8/2018 09:17

thanks 1savvyinvestor, that would be great. I agree with your Australia comments.

[1savvyinvestor] 03/8/2018 09:09

Trentendboy is right to point out negatives. I have planned a phone call with one of the team on Monday. Will report back. I like the tone of the RNS. Maybe Australia should be ditched.

[mortimer7] 03/8/2018 09:06

"this is not just a closed loop, it is a virtuous circle for Hydrodec and its counterparties."
and on the same theme.... sounds like someone's talking out of their ring.

[vitamal] 03/8/2018 09:02

Usually they spike up after announcements and then reverse sharply Could it be the other way round this timeI won't hold my breath

[timmy11] 03/8/2018 08:44

so why cant i buy online not even 50k

but allowed to sell