Member Info for RichieRichie

Not long to wait until interims. Lots of reference to exciting and enormous opportunities in recent announcements. Time for the company to put more meat on the bone and explain the size of the prize and pathway to success. I am a believer. We just need to convert some institutional buying to get the share price to where it should be. About time Hardide issued an investor presentation! Brexit and fx will also help given a lot of sales in US$

Granted. Apart from the revenue what else I am missing!

Share response to all news is good. I just feel that valuation still pathetically cheap for enormous potential from Hardide's disruptive technology. Where else do you get such high margins, operating gearing, high growth and a debt free business with an excellent management team? At £10m revenue and 65% gross Margin net profit after overhead of £3m is £3.5m a year. Place this on a minimum of 25x P/E and company worth at least £100m. Any strategic will need to pay a premium to acquire control from strategic investors so valuation should be much higher. Either I am wrong or the market wrong! Only time will tell but what I am missing here?

Happy days. Tone of statement very encouraging. US orders increasing on the back of new factory and Airbus providing enormous potential. Almost there with commercialising a disruptive technology in the coatings sector. Cash position should be good and hopefully no more funding raising except to fund growth at a significant premium to current prices. Well done to management and look forward to shareholders capitalising on recent news with investor relations focus.

Overhang of seller seems to be keeping a lid on Hardide. Hopefully overhang of seller addressed shortly.

My gut feel is it shouldn't take long to agree commercial terms for first sales, a bit longer to start processing or negotiate a long term framework agreement. Somewhat complicated as have to deal with numerous entry points at Airbus. Company guiding to no material change in revenue 2017 which implies that if there are sales they will start late this financial year (I.e. over the next 6 months). July and August always slow months. Hopefully Hardide can raise some modest debt to support any working capital requirements and no further dilution at these prices. Always a case of jam tomorrow but sense this is getting much closer. PK quite upbeat in Directors talk video and so he should be given this is a significant milestone. Also I sense this half year will be better than H2 2016 as sectors Hardide exposed to are all doing better. Half year results in May next scheduled news release. Would be good to get an investor presentation and guidance on most likely timing and indication of how big the prize is. I agree with you that until this happens share price reaction will be muted. Will continue to buy at these levels.

Been buying today and transactions all recorded as sells. Someone manipulating my buys as sells. Don't understand the black arts of the market makers but can't avoid gravity for ever.

To help put Hardide into context I have a good friend who works for Schlumberger. Recent project drilling deep wells of the coast of West Africa. Each well costing $60-70m. Sounds incredible but current charge out for safety experts around $4000 day and you need 60 to provide coverage over 60 day drill programme. Following BP deep horizon no-one taking any chances with a failure so level of oversight incredible. Add in other operators, technical experts, rig hire, support vessels and drilling cost quickly builds up to $1m a day. Drilling holes quicker a big driver of cost. I read somewhere that Hardide coated equipment lasts up to three times longer than equivalent hard coatings. Hardide can also bond diamonds to drill bits, see reference to Cutting & Wear. In simple terms if Hardide technology can save 1 day of drilling time that is worth a $1m.

Good post Dibs61. Could not agree more that Hardide a fantastic investment opportunity now. Hardide has a far superior performance coating than HVOF and when combined with other factors such as ability to coat complex parts and internal surfaces yesterdays announcement is seismic. Would be great to know how big is the potential prize but revenues of £10m a year don't seem a stretch when Airbus are making 60 A320s a month! If anyone can shed any light on HVOF and hard chrome revenue with Airbus at least that provides one bookend. Groups like Bodycote or Praxair will have to get out their chequebooks and pay up. Role of 2 major shareholders will be key. They look like private investors so can sell when they want without forced redemptions or annual bonus triggers to worry about. Really exciting times and we'll done to management for their perseverance. Let's make lots of money

A obvious thing to say but shareprice goes up when more buyers than sellers. Hardide has got to go out and find pools of capital that like the story. Not just UK but the US where Americans like investing in operations based in the US. Also Europe too. Hardide needs to think bigger and not be reliant on tired brokers such as Finncap.

For every share transaction there needs to be a buyer and a seller so don't know why transactions are recorded as either buys or sells. What I do know is Hardide needs to focus on investors relations in parallel with its business development efforts. No point having a great product and business if shareholders don't make any money. Hardide's market cap and liquidity too small for most institutions. Hardide needs to focus on getting word out to both retail and institutions. Simple things like investor presentations, web chats, broker engagement, investor days and getting out on the road and being relentless. This all starts with a good IR person. Hopefully someone from company reads these chat forums. Once Hardide reaches a bigger market cap and liquidity threshold it will attract more institutions. Magic number typically £100m. Can't underestimate how important it is for Hardide to focus on all aspects of business including IR which I feel is now the time to start following Airbus

Good post Roger. Only comment is HVOF equipment is widely available so suppliers have to compete on price as well as reliability, conformance with product spec etc. Hardide in a league of its own. Price important but not as important as performance and reliability of supply. Hardide is going to make a lot of money...

Brexit and Airbus approval on the same day. A seminal moment. I have been a long time observer and investor in Hardide. As an engineer, I know the product is good. Much better than HVOF which is the key competition. Ability to coat complex parts, internal surfaces, no need for finishing, better wear performance, toughness etc. When assembling an aircraft there are parts that are sealed for the life of the aircraft and lots of them. There will be complex parts for which Hardide is the only option after the phasing out of hard chrome in Sept 17. It has been a long road to commercialisation but in my opinion market opportunity for Hardide is enormous. Hardide strategy targets high margin niche opportunities, where performance is critical and you can get away with 60-70% margin. The strategy explained in the annual report very compelling with 5 key markets i) oil and gas ii) flow control iii) aerospace iv) power generation v) precision engineering. To date only really generating sales from oil and gas, flow control. Aerospace orders are much more predictable and long-term, unlike the volatility of oil exploration (which is also coming back from historic lows). This should help solve solvency issues Hardide has been plagued with in the past when oil exploration suddenly stops. Geographic diversification with US factory a major marketing and production plus. Coating market in US substantially bigger than Europe so Hardide needs to capitalise on this. It has been a very long time to get to this point and tested the patience of investors. However the two cornerstone investors will be key. If someone wants Hardide's product they are going to have to pay a lot for it. The IP is protected and a tremendous amount of IP in processing that a new company cannot simply replicate. Market response lack lustre. Hardide needs to improve its investor relations, E.g. requires full time experienced IR person who can tap retail and institutions, investor presentations, broker support - all the usual stuff to explain how big this can become. With time a secondary listing on the US as Americans love to invest in US production and they have a lot more money than us Brits. Absolutely no doubt Hardide will be targeted so important share price starting point is much higher. 2.5p is the management options (should be a no brainer as no management team would set unreachable targets). Thereafter Hardide is going to the moon and beyond....