Modern Water Share Discussion Threads

[norbert colon] 17/12/2014 20:38

Pugugly what size short position do you have on these?

[pugugly] 17/12/2014 19:35

Everyone else seems to have left this thread - Time to turn off the light ?

[pugugly] 10/11/2014 13:47

Mr Market is voting this down again - A new all time low.

Water should be a winner as getting scarcer BUT these boys appear to lack commercial savey - Not sure if it will go spark out or be taken over by a vulture for the IP -

Anyone any thoughts of the value of the IP ?

[pugugly] 22/10/2014 16:03

Numis are the House Broker - If they said SELL or even HOLD (in house broker xspeak this is the same as sell) then they would possibly be replaced - That is if anyone could be found to take on this cash burner.

Agreed with all those who point out rate of cash burn - Could well be (imo) that they will need more cash if they have to hire more staff for the potential Gib contract. NOTE They are only "preferred bidder - this does not appear to me to be the same as saying "a contract has been awarded" it is not in the bag. (imo etc)

[vow] 07/10/2014 10:43

Modern Water PLC

Numis reiterated its “buy” rating with a target price of 62p. Modern Water announced its largest ever contract yesterday, as preferred bidder to design and build a wastewater treatment plant in Gibraltar. The broker said this was “clearly a very important win”.

CITYAM

[rick the spark] 06/10/2014 10:11

My buy is showing as a sell.
I wonder how many others are.

Rick.

[timberwolf] 06/10/2014 09:34

Northumbrian Services Limited, through its subsidiaries, provides water, wastewater management, and related services. The company supplies water and wastewater services in the United Kingdom; conducts international water management; and supports technical and consultancy services. The company was formerly known as Ondeo Services UK plc and changed its name to Northumbrian Services Limited in September 2003. Northumbrian Services Limited was founded in 1995 and is based in Newcastle upon Tyne, United Kingdom. As of May 23, 2003, Northumbrian Services Limited operates as a subsidiary of Northumbrian Water Group Limited.

[p1nkfish] 06/10/2014 07:19

something positive:

[p1nkfish] 04/10/2014 20:26

if there's any interest I don't think it will be out of a chinese acquirer.

we could do with an update on the chinese interest though, nearly a year since camerons chinese visit and the news release.

i looked at the development mentioned and it looked very pie in the sky to me. the island builds the plant would support hadn't started?

[ohisay] 04/10/2014 18:38

Timberwolf got it right .
There's a capacity issue with the water plants.Just look at the pictures.
Is it scaleable upside thats the question.
Only hope IMV is the Chinese buy MWG cos they think they can do something with the technology.Otherwise there's no upside here.

[p1nkfish] 04/10/2014 17:09

if these idiots can't make good headway in this environment they never will.

[timberwolf] 18/9/2014 16:36

Modern Water Plc (LON:MWG)‘s stock had its “buy” rating reaffirmed by stock analysts at Numis Securities Ltd in a report issued on Wednesday. They currently have a GBX 62 ($1.01) price objective on the stock. Numis Securities Ltd’s target price would suggest a potential upside of 123.42% from the stock’s previous close.

tickerreport.com/banking-finance/298995/modern-water-plc-stock-rating-reaffirmed-by-numis-securities-ltd-mwg/

[p1nkfish] 17/9/2014 23:25

Need to check my thoughts Norbert.
Certainly £1.6M in admin is high.

Wouldn't be surprised to see RNS of Dir buy.

[norbert colon] 17/9/2014 11:02

Pink fish. They are burning £5m pa so don't have enough cash for 3 years more like 18 months although this should be enough. They need a big FO order and have competition from Oasys water amongst others. Monitoring division doing well.

[timberwolf] 17/9/2014 10:49

Another set of uninspiring results, with basically the same old, same old comments.

As for the standard comments we get from the board about cash reserves, here is part a post I made 5 years ago (post no. 547) for comparison:

"....prior to the interims due tomorrow, my major concern, as posted here before, still very much remains the cash burn.....the cash burn issue is still a major factor in my mind and a revenue stream, at the very least, surely needs to come very soon.......my fear is that there will be very little, if any, really positive news in the interims with regard to progress on any contracts/revenue, thereby building on my cash burn concerns." 8th September, 2009

At that time there was cash of around £ 25 million I believe. Also, don't forget that in 2013 there was a placing of 20 million new shares, raising a further £10 million cash.

Frankly, the Al Najdah plant in Oman is tiny, only designed to have a capacity of 200 m3 per day. The largest modern plants today are designed for a capacity of over 200,000 m3 per day.

As for all the trade agreements with the likes of China & Kuwait, let's just hope that something positive comes out of these, as otherwise they mean absolutely nought!

[p1nkfish] 17/9/2014 09:15

They need a shake.

I can see they could be in profit but they shouldn't rely on the Chinese that will play them like a piano. That island development - when I did some looking into it - looked a long way off.

The products look good and the market is there in monitoring. Many things line up for them if they can keep costs under control and push down on them further.

Too much cash can lead to a more relaxed attitude than is good for the shareholders and that is a real risk. It doesn't help cost cutting. They have enough cash for 3 yrs.

I could see breakeven in < 2.

[boonkoh] 17/9/2014 08:37

Can't see any way for this company to break even. Management are just "waiting" for a golden goose to fall on their laps. An activity investor required to shake this company up.

[p1nkfish] 17/9/2014 07:43

Cash pile is a comfort blanket to management.
I can't see where they are looking to deploy and if only a comfort then some should be returned. It looks excessive given revenue etc. It would concentrate their minds if the gave half back of the £8.8M.

[p1nkfish] 17/9/2014 07:29

operating loss flat compared to same period 2013 but total comprehensive loss 100k larger. Overheads reduced nearly 200k. x-rate accounts for 100k reduction in revenue.

many seeds planted and h2 has chance of strength with the container to mid-east, new prods and x-rate reversal.

need to see increased sales traction.

[p1nkfish] 08/9/2014 20:55

How many of the non-etf funds mentioned here hold mwg?
Management need to pull a finger out as they have a wind to their backs.

[p1nkfish] 04/9/2014 10:53

The market to address is massive and could carry this through. The products look great. The obstacle must be the way it's managed.

[p1nkfish] 04/9/2014 10:52

Management are the problem in all probability.
How hard to sell water in the desert to Arabs?
The Chinese news looks like a good bit of fluff to through to the market when someone must have known it was a long time off ever delivering.

Releasing news on Spanish website for LatAm was lame. That's not news. It's expected.

[boonkoh] 03/9/2014 15:05

Well, we know they haven't made much progress on the desalination front, as no announcements. So hence the steady drip down in SP, in line with the cash burn and dwindling cash.....

[pugugly] 03/9/2014 14:46

continuing to gurgle down the plug-hole. Looks as though the investing community have eitehr lost faith in the products potential or managment or both.

If it was just management i would have expected a takeover offer to help investors recover some of their funds-

Still very large cash burne, however a non exec bought 300K at 29.5p back in May. A not insignificant invesment - An act of faith?? or based on knowledge that the prodcuts were going to sell and cash flow break-even was soon approaching ??

Roll on the half year results - Should be due this month and we will see.