Well a lot of people have been waiting on the rebuild since the fire over a year ago. A extra week, month or even quarter will not make a lot of difference in the long run and its better to get this set back found at this stage than later. The fundamentals are still there so just a matter of waiting. gla
RE: Buying Op
Removing the complete shower on both sides of the Greek tragedy, the economy, including oil dynamics, continues it's improving trend. There is a fair chance if you've got some oil stocks, that they will stage some recovery... 'at some point'... Yeah even for an aim listed stock the spread gets quite bad on Hydrodec. I re-listened to Ian's broadcast - I think being as the plant design is modular it is a small part i.e. the heat exchanger unit and ancillaries that have been taken offsite. At first I thought they meant the whole shebang but from the transcript, this seems unlikely. I may be wrong, if not, this makes it less likely to mean losing all testing stages etc.
Hi Nastid, king of agree with you there. Annoying problem rather than a big deal, hopefully. The trouble is the MMs seem to manipulate the spread, so a buyer has to be careful. When the spread widens the price we buy at seems disproportionately higher. An extra 0.25 of a penny is about 3% ish. I usually do deals in these type of stock for £1.6K to £2K - so 3% is maybe £60, just down to poor timing! I'm lucking to buy at no more than say 7p, as I still need to reduce my average (as with many oilies I got carried away with back in the day).
The plant was in full production mode for 3 days, so don't see a fundamental issue, and such testing would've been done at the factory. That is why it is annoying that below spec o-rings have been used... I guess that if it is solely o-rings and more than one, it could be a case of an employee using the wrong bin/batch numbers. It's not unusual for these niggles to hit when ramping up operation of new equipment, it's probably the fact that arguably the whole thing has been planned and executed very well, without any real problems, that this makes it that much more annoying. I mentioned that the change in price might be some imminent news but this wasn't what I had imagined! For those with the mind to and spare cash, sometimes these events can be turned into a buying op.
It's also is a baptism of fire for their new safety systems, which has proved effective.
Very disappointing but rather have them find the leaks now, and not go dangerously unnoticed. Questions. Does the retool mean accreditation starts from scratch. One incorrect o-ring may be a mistake but many such incidents is either careless or dishonest. Is there a cost reduction to reflect the hit to Hydrodec. Up till now it has been going very smoothly, so not unusual to have minor set backs. The problems seems localised, as Ian says, remedial action shouldn't thus be a problem.
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