Anyone who already read it will be selling early this morning ahead of those who have yet to read it. A few points -
1 - "these challenges will effect the remainder of the 2013 season"
2 - Drop in gases are affecting over supply. They were less than 10% in 2012 and in 2013 are up to 20%. I take it these are the artificial freon gases coming out.
3 - contractors are encouraging homeowners to upgrade to newer systems that don't use freon.
4 - Even with a warmer July, there is a glut of R- 22 (freon) and prices could fall further than the 40% already down.
5 - Hudson has to review inventory of what freon they are carrying (prices are down about 40%) and may
have to "review the carried value of our inventory and may require to make an adjustment to our inventory.
What we need, since I hold shares here, is a warmer than normal August and Sept. to get rid of some of the over hang of freon on the market. That would be a good start. Then the EPA has to step in and lower their allowances. Those two factors would help turn this around in 2014.
I have heard that major producers of R22 are running seminars on alternatives to R22 they say they are cheaper and not that less efficient, in most cases you do not have to change seals and oil ( sometime you have to) there also are situation where you cannot change from R22. We need to know what % this would cut demand. . We need more info on how fast new equipment is replacing old equipment. The company had no answers only questions. The only thing we do know is the end date for production but we have no way of judging the demand for reclaimed which I understand right now has very little value. As value of inventory goes will it go down and stay down or will it eventually rebound and when, To many unknowns, to many questions, management has no answers, how can any investors take a position in a one product company with everything up in the air. ???