Hydro - Environmental legislation = 'massive' market growth potential

DJ, agreed. At present (emphasising the "present") I also see this as a terrific, solid investment at an attractive valuation which should provide at minimum decent growth for a while to come.

But that may change shortly. If HYD can translate their recent contract wins and the Vexamus acqusition into forecast-beating results and move into well into double-digits EPS, as discussed above, then HYD does become very cheap - and that could happen imminently with a trading statement for 2005 or with a positive outlook and a good H1 for 2006.

Even on current 2006 forecasts the P/E is only 12.9, so there's plenty of room for another 15%-20% on reasonable results with the market looking forward to 2007. And Hazell Carr haven't bought such a large stake just for a trade...