STOCKS NEWS EUROPE-Hydrodec down on funding concerns

Shares in Hydrodec Group Plc (HYR.L) fall 10 percent after the renewable oil firm says it is currently has only four to six weeks of working capital and is in talks with a number of shareholders to secure further funding.

"We believe a new equity raise would be dilutive to earnings and further devalue the share," Piper Jaffray analyst Alastair Bishop says in a note.

In December, the company raised about 2 million pounds through a placing of shares.

"A mix of tight industry margins, execution risk and significant potential overhang from its convertible loan note lead us to remain cautious on the stock," says Bishop, who maintains an "underweight" rating on the shares.

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Reuters messaging rm://purwa.naveen.reuters.com@reuters.net