Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
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Hydrodec has made progress on executing its strategy despite challenging markets and equipment performance issues that have delayed the ramp-up of full production at its Ohio facility. Following updated guidance regarding US FY15 output, we reinstate our estimates and valuation, which sees fair value at 11.3p with current levels of risk.
Hydrodec has identified further minor equipment integrity issues at its Ohio site. The first two of the six processing trains at the site remain operational. However remedial works mean that it will take longer than originally planned to bring all six of the processing trains into operation, so management no longer expects to be able to hit its stated production target from the site this year. We place our estimates under review until there is more clarity on the schedule for bringing all six tr...
Hydrodec is on track to resume production at the Ohio facility in May, with a 50% expansion in nameplate capacity compared with December 2013. The acquisition of Eco-Oil in April strengthens Hydrodec’s platform for UK production of re-refined oil. We adjust our FY15 estimates to reflect the acquisition, movement in oil prices, currency rates, relocation of the Australian operation and lower collection volumes in the UK recycling business, and revise our indicative valuation to £108m (14.5p/sh...
Hydrodec has announced that it is to acquire the business, assets and trade name of Eco-Oil from Eco-Oil International for £2.4m. The transaction strengthens Hydrodec’s platform for the production of re-refined oil in the UK and provides opportunities for improving the profitability of OSS, the group’s existing UK oil recycling operation. Our forecasts are under review post recent publication of the FY14 figures.
In 2014 Hydrodec’s management has taken a sequence of actions which prepare the group to recommission US transformer oil re-refining operations with a 50% expansion in capacity by end Q115 and to commence lubricant oil re-refining operations in the UK by end FY16. Following successful resolution of the insurance claim, we reinstate our estimates and valuation, which sees fair value at £123m.
Hydrodec has announced that it has arranged a $10m loan facility, which ensures the group has the cash required to expand operations beyond the six trains currently being prepared for installation. It is one of a sequence of actions taken during FY14, preparing the group to restart US transformer oil re-refining operations by end Q115 and to commence lubricant oil re-refining operations in the UK by end FY16. Our estimates and valuation remain under review until the new year.
Hydrodec has signed an engineering and licence agreement and a technical collaboration agreement with California-based Chemical Engineering Partners (CEP). These accelerate and de-risk Hydrodec’s plans for entering the UK lubricant oil re-refining market. Our estimates and valuation remain under review until the outstanding insurance claim is completed, expected in Q314.
Hydrodec continues to make progress towards its strategic goals while preparing to restart re-refining in the US in Q414. Management has made substantial progress on negotiating the insurance claim for the incident that has halted re-refining at the Ohio site since December, receiving a total of $5.5m in interim payments, but our estimates and valuation remain under review until this process completes, expected in Q314.
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