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Hydrogenics Corporation Message Board

  • sballen123 sballen123 Apr 1, 2014 10:14 PM Flag

    Correct me if im wrong but....

    All they're really doing is looking to amend their credit agreements to allow for borrowings up to $100M whereas it's currently $25M. To this is essentially a non event. Yea it shows they're growing and will need higher credit limits as they continue to grow, but we all know they're growing and this should be expected in due time for any growing business. Still long but I just don't see this meaning much until they actually issue additional debt.

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    • IMO, the problem is HOW they might get, say, the $100 million - either by taking on DEBT or by issuing new SHARES (can we say DILUTION). Say 5 million new shares at $20 would be 100% of the current float that might be sold into the open market (with all its rampant 'fiddlers'). I would rather see GM/Enbridge/Commscope pony-up/up their ante in HYGS, see HYGS issue warrants,...

    • Meanwhile.... 97k shares, down 5.7% on YAHOO.
      But it's an error.
      Nasdaq PM reports 25 shares (twenty-five).

    • HYGS has no debt.
      Current cash is 11.8 Mil$..... even if we are almost cash flow positive, 11.8 Mil$ is too low for a Company with such growing market. Soon many H2 stations will be built.... more PTG projects (one is on its way, in America with E.ON).
      So honeslty I saw it coming..... no matter if it's diluitive (shares), non diluitive (preferred shares or debt).
      Well, of course it won't be a single block 100M$ overnight issuing.
      A new shelf is positive when you have a growing business.

    • Not correcting but pointing out that I think it's very exciting. They can see the future & work toward it & plan for it every day. They see significant growth coming & are plannig for it accordingly. It's almost like insider buying as far as an indicator IMO. You're right that it's not a significan milestone but I see it as a confirmation that we're all right about this company...and anxious to get to the future.

      • 2 Replies to gogotron2
      • Many of their orders could be called "Capital Expenitures" that are budgeted for sometimes more then
        a year in advance by their buyers. Their world wide sales force has been working on them from the design stages, so they have a good read on their future orders. Accordingly, I think such a statement is dramatically bullish. Also, many of their orders also begat additional orders from the same customer or the same industry, either locally or worldwide (like the harbor power thing will probably go worldwide). Also, by incrasing their capital base, they increase their borrowing power for working capital sometimes required for work in progress for goods about to be delivered for payment.

        Don't think this has a wide anaylist follwing (yet) but it's like blowing a whistle & saying "we're about to explode to the upside...better buy now". I've got a big position but this statement makes me want to buy more, if it dips, because if they're increasing their capital base, more growth is coming, sure as rain.

      • I do agree that it's confirmation that things are heading in the right direction. I like your enthusiasm.

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