Zirax Share Discussion Threads

[whonosewhy] 15/12/2008 13:54

In Zirax terms some big trades today.

I just wonder if Pennygold are selling again after taking a breather.

Odd numbers of trades too - 77,777 a few days after 55,555 - looks almost random like "oooh how many shall I sell today????"

[whonosewhy] 11/12/2008 09:47

jimbox is correct on the Moscow contract figures - if it is on the same rate then just under $0.3m.

For me it is the geography that seems good - i.e. this follows announcements for Romania and Azerbaijan - let's see if we can move through the Balkans and through Hungary - don't forget the acquired company based in Austria too.

[jimbox1] 11/12/2008 08:36

Measurenguy, I think the Moscow contract for 23,000 tons was worth $6.6m. If the Bulgarian deal is at a similar price, it would be around $0.3m. I suppose the significance is that this is a new customer in a new country and increases the diversity of its customer base.

[azalea] 11/12/2008 08:12

Increasing its footprint in Europe and in a country not exactly wealthy is a very good achievement. It might sem a long road, but I think ZRX will get there in the end with a product that has no equal in an increasingly enviromentally aware world.

[masurenguy] 11/12/2008 07:25

Interesting new contract - anyone know the value of 1,000 MT of de-icing agent !
................................................................................

Zirax signs agreement in Bulgaria
RNS Number : 9289J
Zirax PLC 11 December 2008
FOR IMMEDIATE RELEASE

Zirax plc ("Zirax" or the "Company") Zirax signs agreement in Bulgaria Zirax plc ("Zirax" or the "Company"), the AIM quoted speciality chemical company focused on the development, production and sale of oilfield process chemicals and de-icing solutions, is pleased to announce that it has signed an exclusive distribution agreement with Pharmco to supply calcium chloride based de-icers to the Bulgarian market. Under the contract, Zirax will initially supply 1,000 Metric Tonnes (MT) of de-icing agents for use in some of Bulgaria*s largest cities during the 2008/09 winter season, including Plovdiv, Stara Zagora, Rousse and Veliko Trnovo. Following a successful trial of Zirax*s de-icing products, IceMelt* and pure calcium chloride de-icing agents have been chosen because they are more effective and less harmful to the environment than regular de-icing mixtures.

Fenlon Dunphy, Zirax Chief Executive Officer said: *We are very pleased to have secured our first supply agreement with Bulgaria. Demand for not only highly effective and technically advanced solutions, but environmentally friendly de-icing chemicals is growing and we are well positioned to supply our customer base. Europe is an important region for us and we continue to grow our sales and increase our footprint there*.

[whonosewhy] 10/12/2008 17:52

Thank you jimbox - as you can probably see from my talking to myself (getting more fed up each time!) I am trying to work out in my own head if I've attached myself to a loser - at least someone else thinks this is not a lost cause.

[jimbox1] 10/12/2008 16:43

The analysis or quote is wrong. I bought 25,000 at 2.65p, but it appeared as a sell in the trades list. My guess is that the other deals at 2.65p or 2.7p are also buys.

With cash of around 2p per share and net assets of around 8p in the last accounts and (hopefully) a return to profits in 2009, this seems worth a punt.

[whonosewhy] 10/12/2008 14:59

More sells today !

Maybe this is what people call capitulation - just for this share obviously!

Of course I might be surprised and someone might RNS a big purchase by someone in a couple of days but it feels like people slowly deserting a sinking AIM ship !

[whonosewhy] 08/12/2008 21:32

I'm not giving up yet but I am starting to feel like I should not get too attached to this share - I am down an average of 65% here which is by far my worst performing share amongst some pretty poor performing shares !

[azalea] 08/12/2008 18:51

But that's all it is- a distressed seller clawing back a mere £7800.

[studhaves] 08/12/2008 18:31

I know the feeling.

I thought that these would do okay - the right product in the right place at the right time, but in essence I think that all companies are fu ked since it looks like the economy is going to completely melt down over the next 12 months.

So I wouldn't worry because even cash isn't going to be worth anything & the government will make it illegal to own gold & silver, so we're all going to lose 99% of what we had no matter what we do.

[whonosewhy] 08/12/2008 18:03

A sell of 489,893 shares reported as a delayed trade at a price of 1.5p

That is one desperate seller?

I re -read the interim results details again today and my earlier comment that I will feel like a mug is concerning me more.

The volume is so low on this- that sell of nearly 0.5m shares could take months to clear.

The move they have made into the oilfield side of things looks like folly given the way the oilers and oil services are being hit.

Add to this the Russian economic problems and I am starting to feel a right mug !

[whonosewhy] 04/12/2008 14:49

I keep hoping azalea!

As I keep saying I am slowly adding a few each month here and I just think that the compnay have done exactly what they said they would do - they have cash in the bank and have increased their capacity for product to try and meet the demand.

They have got more contracts in the oil sector to diversify.

I'll feel like a right mug if they keep heading downwards !

[azalea] 04/12/2008 13:54

Perhaps significantly, the spread has been increased on the asking price and not the bid. Winter is fast approaching and further contracts might be achieved.

[whonosewhy] 04/12/2008 12:35

Thanks - So few trades I missed them!

[masurenguy] 04/12/2008 12:32

Mark up is due to the spread being widened from 1p to 1.5p after a 25K Sell @ 3.55p.

[whonosewhy] 04/12/2008 12:21

Anyone any indication of why the mark up on the offer this morning?

Edited - Must be blind there have been a couple of trades today.

[whonosewhy] 13/11/2008 12:28

Yet more good news - again I am approaching the time when I will add some more and they have put the price up just before it.

[tuckswood8] 13/11/2008 10:17

I would have added this morning but as usual was marked up before market opened and spread is ridiculous.

[azalea] 13/11/2008 08:24

A cracking break through order in the ME, which clearly demonstrates that current low oil prices are not affecting ZRX ability to win orders which speaks volumes for its potential to win more orders in the years ahead as its products slowly but surely becoming a standard in the oil industry.

[masurenguy] 13/11/2008 08:10

Good contract win over 3 years - could be a stepping stone for further ME business !

[whonosewhy] 03/11/2008 13:41

Bought some more few days ago. Either I am completing misjudging this and throwing money down the drain or surely we have to see some good news come through eventually.

That said I am think in terms of regularly adding for the next few years - all being well so the short term I am fairly relaxed.

[azalea] 03/11/2008 11:11

Russia 22.8% cut in crude export tax in order to stimulate exploration and arrest falling output, is good news for ZRX.

[azalea] 01/11/2008 18:14

Shavian
Thank you for relaying the tip. The group with a very large holding have every incentive to get the company back on target.

[shavian] 01/11/2008 08:31

Buy Zirax at 3.25p

An exclusive tip from Scarlett Moore of Sharecrazy's Premium Service

As the summer days draw to an end I have a winter themed tip for you. Zirax (ZRX), which was founded in its original form in 2002, is the world's second largest producer of calcium chloride pellets. The company sells its products into three main industries, oilfield services, through the Oilfield Process Chemicals business, de-icing, through the De-Icing division and industrial chemicals, through the Industrial Chemicals division.


For the oilfield services sector Zirax has developed its own branded product, PelletOil, which is a high purity form of calcium chloride. These pellets are used in the oil industry in applications such as drilling muds to cool and lubricate drill bits, in completion fluids for flushing and cleaning drill holes and in enhanced oil recovery technologies to improve oil extraction.

In the de-icing business, which until recently provided the company with the majority of its revenues, the company has a long standing relationship with Moscow City Council, to which it supplies its IceMelt and calcium chloride products. Calcium chloride have many advantages over traditional salt and sand based de-icing as it is melts ice faster, is more environmentally friendly, as it does not corrode metal or harm vegetation, and requires smaller quantities to achieve the same result as salt.

Finally, the smallest division of the business, by revenues, is the industrial chemicals division. The company's UniPell calcium chloride product is used in a range of industrial applications including in wastewater treatment for removing contaminants, in concrete manufacture as a setting aid and even as a firming agent in cheese.

Zirax manufactures its calcium chloride from a plant located in Volvograd, Russia, where capacity was increased last year to 115,000 tonnes. In addition, Zirax has recently added new capacity to the tune of 55,000 tonnes through an agreement with the international chemical and pharmaceutical group Solvay, whereby Zirax will earn two-thirds of production from the recently opened Rosignano plant in Italy.

The company issued interims the other day which were below forecast and the shares have crashed as a result. That is where the value now comes in. The company has recently announced a couple of significant contracts although they may not boost the bottom line until 2009. Firstly, the company has won a deal to supply Bucharest City Council with de-icing products. Under the agreement Zirax will supply 2,000 metric tonnes of de-icing products to the Romanian capital city in the 2008/09 winter season. This deal follows a trial of the company's products which was carried out last year. Secondly, Zirax has won a contract to supply its PelletOil calcium chloride products to oil drilling operations in Azerbaijjan. The pellets will be used in the Azeri-Chirag-Guneshli oilfield, the largest complex of oilfields in Azerbaijan. This deal demonstrates the opportunities that are available to grow in the sector, which is estimated to be worth $10 billion per annum and is currently growing at around 6% to 7% per annum

*The value of investments can go down as well as up. Past performance is no guarantee of future success. Investing in equities can lose you part or all of your capital. The tips given here are of necessity, general. They cannot relate to the individual circumstances of investors. Anyone considering following the recommendations contained here should seek independent advice. Investments in smaller company shares, by their nature, can be relatively illiquid and thus hard to trade. And that makes such investments more of a high risk than larger company shares.

Zirax's house broker expects the company to post revenues of $40.5 million, pre-tax profits of $2 million and earnings per share of 0.78 cents in the year to 31st December 2008. As production from the recently opened Italian plant is ramped up in 2009 earnings will zoom ahead to 2.9 cents - shall we call that 1.53p. The shares are thus trading on a 2009 multiple of just 2.12. Capitalised at £11.63 million Zirax is also currently trading at a discount to net assets of $29.64 million (£16.28 million) as at 31st December 2007. I rate the shares a BUY.

Key Data
EPIC: ZRX
Market: FULL
Spread: 2.5p-4p (37.5%)