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Technology Stocks : Hudson Technologies HDSN -- Ignore unavailable to you. Want to Upgrade?

To: EenieMeenie who wrote (96)	6/21/1998 8:56:00 PM
From: Phoenix1	Read Replies (1) \| Respond to of 108

CNOLT: Yes, I suppose there is a limited need for their services, on-site refrigerant clean-up, but most facility owners don't routinely clean up their refrigerant at all, unless they have a compressor or tube failure. There too, there are clean-up options other than onsite recycling, which work. maybe onsite recycling works a little faster, but its not the only way. At any rate, the problem is that if that's their only unique service, it isn't going to generate any big bucks. As you know, all service industries are capital intensive, have uneven work and cash flows, and are fairly competitive price-wise. I just can't see how they can support an $8 million overhead for this kind of service. And if they start closing down branches and laying off people, which i think is inevitable, then they will be less useful to those few multi-location companies who use them now, since they won't be conveniently located. Anyway, if they can lower their overhead to $2 million a year, they could maybe do okay. Regarding the Russia stuff, true they sought to patch up relations with industry, but that was after the "barn door" was closed by EPA and IRS. As a matter of fact, EPA implemented a complete petition process to stop people from importing "used refrigerant" (mostly from Russia) that was not really "used". This is well known. (P.S. the other company with a similar Russia game plan was Full Cycle, now a subsidiary of EVTC - Environmental Technologies. If you compare the stock price charts of these two companies over the last 2 years you'll see they are almost identical. That's because the floor fell out from under each of these companies for the same reasons: Ban on Russian imports, and falling R-12 prices. In short, I can only see them surviving as a much smaller company, or changing their services to include many other things in addition to what they now do, but I don't know what those "other things" would be. Any other questions?