HydroDec Group (HYR) Has developed technology that allows contaminated oil to be cleaned and re-used. In todays environment this kind of company cannot be overlooked. It already has a fully-functional plant in Australia and another is due to be opened in around 9 months. Tipped in Shares magazine as a 'blue sky' stock. If the company manages to capture 1/2 of the market revenue could be as high as 1 billion.

Anyone holding who's as excited as I am?

Looking at all this it's a bit confusing as I see it VTI are the parent co now with 38% shares in Hydrodec. VRT bought HYR and changed their name from Vert Eco to Hydrodec. I think this is right. Looking at VTI I think that there is huge potential there too not just the HYR bit but all the other products they have. I am seriously thinking of buying VTI as well. More research needed. Can anyone else add any info?
Di

Di

It is confusinhg - I think you may be suffering from a touch of Vert Ego! Is that French for green with envy - TFC would know!

As I understand it . . .

Vert Eco (a shell listed on AIM in Aug '04 to acquire environmental type companies) bought via a reverse takeover Hydrodec Pty Ltd from Virotec (VTI, a water/environment chemicals diverse outfit in Oz) in return for 500k cash plus 60 million shares = 38% of enlarged Vert Eco cap, plus paid off 500k debt due from Hydrodec to Virotec. Vert Eco simultaneously placed 9 million shares for 1,035,000 cash gross.

Vert Eco changed its name to Hydrodec plc on closing the deal and listing of new shares on AIM 21st December 2004 - having now one operating subsidiary Hydrodec Pty with a single product.

So, Hydrodec plc (HYR) is interesting for its one operation and also for any further similar acquisitions it may make. With only 1m raised at placing, do they ahve enough working capital to grow as fast as they could worldwide - still just limited to Oz albeit with their second plant - must be opportunities in higher density populated areas of the world, Why not expand there too, since technology now proven??

Virotec (VTI listed in Oz and on AIM - like PGS, must visit that one too, Di - so much to buy and so little money!!!) is interesting because it owns 38% of HYR and has several other water/environment businesses up and running. Maybe other businesses are more prosaic and overall business will not have such a high rate of growth. But they do have 38% of our hero company.

Which to buy? Dilemma - which is Greek for the law according to Di - needs to be resolved.

May see you at that bash in April in London. If I go, I'll look out for you.

SD

Well SD..Thanks for the info. It is a bit confusing. I already bought HYR on Friday but I still have plenty of spare cash after taking profits on PDX and NOP.
Plan is to buy more SEO on dips, HYR on dips, GFM on dips and should I buy VTI as well as I don't have any yet. Just been looking on Afdvn postings about an institution who sold lots of HYR recently and bought the same amount in VTI instead. VTI chart looks a bit static to me though. I shall keep an eye on it.

I will definitely be at the Traders day so it will be great to meet you.
Di

Don't know about VTI chart being static - but we may be heading to the top of the 5th wave after which 3 declining waves ?? - so I think plenty of time to wait for it to peak and fall back below where it is now to buy. But since Jul'03 there has certainly been a bit of life in the old SP.

Gotta go - dinner's burning!

SD

Di & Stockdog, hello again, I've been mulling over this one for a few weeks since the bluesky article. At that time put more into topping up SEO so not a bad decision but have just released some funds and looking for the next one.
Can't make my mind up whether to buy or not, principle looks good, application of enviro could also end up being legislation driven? Question is the timescale. Article said first serious profit in 2008. I'll kick myself if I do & it's peeked for now and if I don't and it flys. Difficult one this!

Chart is very similar to SEO's recent progress (but without the 51 year history prior to that) - but with so much recent info on that subject we probably feel we know it better. And several of us are buying more at the 13/14 level - although mostly those who started at the 4p or 8p level on first buy.

Over the long-term, if this share does perform over the next year or so, the recent doubling will seem like a pimple. If it doesn't perform we will have regrets. Do we know who the main holders of stock are and if they've been selling into the rise?

Profitability being so far away and no idea what a litre of re-cycled oil earns gives little clue to the evntual profitability. Not sure where Dynamite got her 2bn annual world market from (not disagreeing, just asking). Also hints but nothing definite about what other applications the same technology has in cleaning industrial waste products - be nice to know there was breadth (PSG e.g. has as many applications as you can think of related situations) as well as depth to its eventual market - then I'd be in like a shot.

It feels sexy to me, but too little info to definitely want to get into bed (if you'll excuse me carrying the analogy to the next logical step). Maybe I'll just watch for a while - that doesn;'t sound too good either does it.

SD

SD.. The 2bn annual market came from the Shares Mag.
Di

Durlacher have done an Initial Coverage Report.

The say Key to HydroDec is the 9 month payback for the enlarged 20,000 litre per day facilities. Therefore, we believe HydroDec will be able to fund its own expansion. We believe the future will see major customers taking licenses to the technology and paying HydroDec a per usage royalty fee.

In short term they set a target price of 50p and an indicative net present value of 156.7m against a current EV of just 33.4m at a price of 23.5p.

So is it a scrreaming buy or not, what happens if any glitches with the new plant??

leslielipert - can you let us know where we can read the Durlacher note - it's still a mystery to me who they are issued to and where one can readily acquire them or even know they exist.

thanks

andysmith - remember the principle, do your own screaming! nearly dived in today, but couldn't resist some more DEMG at what I hope will be the bottom of their recent decline.

SD

This one is screaming at me to buy it but so are many others and I only have so many funds. May have to take profits from elsewhere!!

Andy and SD... HYR has already screamed at me so I bought last week. It is one to hold for a while me thinks.
Di

Di

You'll just have to hold it for us too for a while. Thinking of writing a book on the psychology of what to buy called "The Divided Scream" - catchy, don't you think.

If DOO keeps on going I may have profits to reinvest sooner than I think.

Have now booked in to Trade Day - see you there I hope.

SD

Look forward to it SD
Di

I have had difficulty deciding whether to buy VTI or HYR. Last week I bought HYR but seeing the news on VTI, the orginal owner of Hydrodec and 38% shareholder of HYR, I bought into VTI today as well. Both these companies have a very good future.
Di

Very wise hedge Di - I am sure they are both interesting - hope to join you there soon. I did something similar with BFC and DOO - of course they're not related (yet!)

SD

found a fantastic water cleaning system, very competitive market and no copy protection. am interested in finding out more about the oil filter. what other technology is out there to achieve this? can anybody help?

Di, If you see this before you look at VTI thread, ditto. Need your thoughts, please.

SD

I know Shares mag has tipped this one recently, just wondered if they've had anything to say about VTI in the past?

HYR appears to have bottomed out at 16p last week and has now risen around 10% per day for the past 3 days. This is such a brilliant company that they deserve to have a much higher price. Someone knows something though...the buys are big and so some are coming up as sells because the price has moved up by the time they appear.