HDSN - Hudson Technologies: Valuation Should Improve As Refrigerant Prices Rise

2024-06-08 09:21:12 ET

Summary

• Hudson Technologies' stock has experienced a significant correction due to lower-than-expected margins and the market's uncertainty for future recovery.
• I think the company's long-term prospects remain positive, with a dominant position in the U.S. reclamation market and strong regulatory support.
• Despite risks and uncertainties, the stock is attractively priced and has a potential upside of over 76% in the next 12-15 months.

Introduction

I started covering Hudson Technologies ( HDSN ) stock in late 2021 when it was trading at ~$4 - since then, I've written about HDSN 6 more times , and each time I've updated my thesis, I've come to similar conclusions that the company is undervalued and has good operational growth prospects. For a long time, those bullish calls were perhaps the most successful in my "career" here on Seeking Alpha, until the stock started to crash:

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