IMD - Imdex Limited

[finicky]

Imdex @ 1.53 intraday
It has bounced off 1.40 a few days ago
Bit of a rise today ^3.5% so far but there's doubt this has substance as IMD goes ex div of 2c tomorrow.

It does seem somewhat undervalued. I was ungenerous using F22 book value of 0.74 to base a valuation on. The FY23 book value is 1.10 and if expecting a return to a median ROE of at least 10% in FY24 or FY25 then 2.20 seems a reasonable value? That's without a safety margin discount.

The chart hasn't broken through the most recent downtrending resistance line so not that much to encourage long termers yet. But not impossible it's seen a significant low?

Held

DAILY

 

[finicky]

Put in a bid for 2,500 @ 1.52 to scratch the itch. Bring me up to a more round figure holding.
Paul House the M.D bought 80,000 @ 1.59 in early-mid Sept.

Held

 

[tech/a]

Have some at $1.54.

Some volume hints and I note a Divergence in RSI.

 

[sptrawler]

A great little company, I think they are still trying to find their feet post Bernie leaving, but I have been in and out of them several times, all with a profit. I currently don't hold, waiting until we see an upswing in materials, they always are tied to the mining cycle, I have found.

 

[finicky]

Added 2,500 more today @ 1.425
More based on my perception of value than the chart.
Why do they keep selling it?

Held

 

[divs4ever]

Added 2,500 more today @ 1.425
More based on my perception of value than the chart.
Why do they keep selling it?

Held

i am guessing the perception that 'fossil fuels exploration ' is a dead end industry

remember some fund managers still embrace the ESG mantra

i hold

 

[finicky]

@divs4ever they might have a bit of work from coal miners, don't know as I can't find from their presos, but they are totally out of oil and gas. They made a disastrous foray into that years ago and were forced to exit. Now they sticking to their knitting, which is rock minerals. From a Mar 2023 PM Capital piece:

"Imdex has four main products: drilling fluids, drilling optimisation technology, rock-knowledge sensors, and software. These products are used in mines in the Americas, Asia Pacific and Europe/Africa.
By commodity, Imdex earns most of its revenue from gold and iron ore projects, with growing exposure to critical metals used in Electric Vehicles and renewables infrastructure."

 

[divs4ever]

@divs4ever they might have a bit of work from coal miners, don't know as I can't find from their presos, but they are totally out of oil and gas. They made a disastrous foray into that years ago and were forced to exit. Now they sticking to their knitting, which is rock minerals. From a Mar 2023 PM Capital piece:

"Imdex has four main products: drilling fluids, drilling optimisation technology, rock-knowledge sensors, and software. These products are used in mines in the Americas, Asia Pacific and Europe/Africa.
By commodity, Imdex earns most of its revenue from gold and iron ore projects, with growing exposure to critical metals used in Electric Vehicles and renewables infrastructure."

an alternative reason could be a predator deliberately short-selling the company in a prelude to an opportunistic take-over , this has happened before elsewhere , but is that happening here

keep an eye out for particularly damning sell-side analyst presentations to help drive the share price lower , to make this theory appear more likely , things to consider , does IMD have a portfolio of patents ( or stuff where patents are pending ) , cash in the bank and low debt

personally i am looking for sub 80 cents before considering adding more , i see a downturn in resource exploration expenditure , yes i still want to invest in 'mining services ' companies , but i really do love bargains

if this goes higher and higher i still have a few in the 'bottom drawer ' ( i won't be heart-broken )

 

[finicky]

Bid in for 2,500 more @ 1.39.
12 months low notification for IMD today.
Very precarious chart although momentum indicators are suggesting to me a swing low should be near.
If not, I'm going to assume this is value from a longer term perspective. Even if a commodities slump ahead is an explanation for this IMD downtrend.

Held

DAILY

 

[finicky]

Yesterday's high volume hammer like candle pushed price below what I have taken as support at 1.40 but returned it to 1.405 at yesterday's close.
Todays's follow up is positive. It's a bit like one of those Wyckoff 'spring pattern' thingos.
I might regret faffing around with my buying as I am not back at my target amount yet.

DAILY

 

[finicky]

Just picked up another 2,500 IMD @ 1.395 from an overnight waiting bid. The price is now 1.38.
I think a swing low is being formed but its on the edge. The low over the last 10 days is 1.365.
The volume to drop the price was low, less than 100,00 shares. Yesterday it recovered well from negative to
positive at end of day. Maybe it is being accumulated? Don't know.

Held

 

[finicky]

Another intraday recovery from IMD, closing at 1.40 up 0.005
AGM addresses from Chair and CEO.

DAILY

 

[Value Hunter]

If the share price drops to book value or below I will take a closer look. For now I am just watching from the sidelines.

 

[finicky]

5th best ASX200 performer today according to Nabtrade. High volume for this 4.2m, big white candle

 

[finicky]

Imdex (IMD) upgraded to buy from neutral at Citi; Price Target: $2.20 from $1.60
One of many broker sentiments on different stocks listed on livewire today

Held

 

[finicky]

Price hovering around resistance/support @ 1.80
Volume low.
Looking for a reason I saw that 1H23 report last year was at 27/01/23.
Just incidentally I noticed that it was near this time in January 2023 that the company raised a large sum @ 2.20 for the acquisition of Devico. The placement was over subscribed and the retail offer was fully underwritten. Yet here it is today with no demand @ 1.80 (not that I'm buying)

Held

DAILY

 

[divs4ever]

i bought during the 'contaminated mud saga ' ( 82 cents average )

sits in the bottom drawer for me

will get interesting if Russia starts selling only the BRICS allies , some nations will have to become energy self-reliant

 

[sptrawler]

i bought during the 'contaminated mud saga ' ( 82 cents average )

sits in the bottom drawer for me

will get interesting if Russia starts selling only the BRICS allies , some nations will have to become energy self-reliant

With money tight, exploration is one of the first cutbacks, just after contractors IMO.
I definitely get a feeling of the hatches getting battened down, just a feeling, nothing concrete.

 

[finicky]

@sptrawler could be - hopefully we'll know more about that when they report HY towards end of Jan. The gold sector provides a lot of Imdex's custom which might insulate it a bit. That, and it is getting more transaction from miners, as distinct from explorers, so they've said in the past.
Price has 'overbalanced' its uptrend but I'm tipping this as probably just an ordinary retracement fwiw. Volume is very low as price weakens and it hasn't even retraced 50% of the prior uptrend yet. Be interesting to watch the 1.80 level.

Held

 

[finicky]

Imdex today beat all the indices that it participates in it looks like.
The retracement, if that's all it is, could be complete but I'm not counting on it after the break of 1.80. After that break I thought 1.70 was a chance (the mid-point of the prior range) but I thought 1.65 - 1.60 more likely. To my eye the chart shape also holds the potential for a significant rally off the Dec Half report to come in late January if that report is viewed positively.
I do have a bid in but it's an oldie just sitting there at a much lower level.

Held and Holding


DAILY