Hudson Technologies: Buy When Others Are Fearful For The Upside Is Almost Inevitable

Summary:

• Despite a 36% drop in Hudson Technologies’ stock, I remain long, buying more after a 20% post-earnings drop due to strong fundamentals.
• Hudson holds 35% of the refrigerant reclamation market, benefiting from the AIM Act’s phase down of virgin HFC production, ensuring long-term demand for reclaimed refrigerants.
• Financials show a 19% YoY revenue decline and margin pressure, but Hudson’s balance sheet is strong with $56.5M in cash, no debt, and a buyback program.
• Market uncertainty and pricing pressure exist, but Hudson’s CEO anticipates higher HFC prices as demand outstrips supply, supporting a positive long-term outlook.

Hudson Technologies Stock Falls

This article on Hudson Technologies, Inc. (NASDAQ:HDSN) was long overdue. Back in May, I disclosed I was buying more of Hudson during market turbulence. Let me say it right away: I am still long, even though the

Analyst’s Disclosure: I/we have a beneficial long position in the shares of HDSN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.