Mining Services Stocks

Muschu · 20 April 2012

(Joe could you please redirect this to another thread if that is best?)

I am looking for, if it exists, a list of Mining Services stocks. Here I am thinking of companies such as ASL, MND, BKN etc.

I ask because I'd like to do a little research into the area.

Views on companies in the area would also be of interest.

With thanks

Rick

skc · 20 April 2012

Muschu said:
(Joe could you please redirect this to another thread if that is best?)

I am looking for, if it exists, a list of Mining Services stocks. Here I am thinking of companies such as ASL, MND, BKN etc.

I ask because I'd like to do a little research into the area.

Views on companies in the area would also be of interest.

With thanks

Rick

The industry listing is Capital Goods.

http://markets.smh.com.au/apps/mkt/industrylisting.ac?code=2010&next=all

I think this list covers ~90% of what one would classify as mining services.

A few in there doesn't fit the bill, however. So DYOR.

Muschu · 20 April 2012

skc said:
The industry listing is Capital Goods.

http://markets.smh.com.au/apps/mkt/industrylisting.ac?code=2010&next=all

I think this list covers ~90% of what one would classify as mining services.

A few in there doesn't fit the bill, however. So DYOR.

Many thanks skc. That is some list !!

Julia · 20 April 2012

Rick, I haven't looked at skc's list yet but MND is one you might like to consider.

Muschu · 20 April 2012

Julia said:
Rick, I haven't looked at skc's list yet but MND is one you might like to consider.

Yes. Did OK with it previously thanks Julia but don't hold it right now.

skc · 20 April 2012

Here's one for you to research.... DSB.

You can thank me later

skc · 4 May 2012

These guys are getting a nice royal a$$ kicking today.

DCG -8%
MAH -7%
LCM -7%
SDM -6%
ASL -6%
NWH -5%
EHL -5%
BLY -4.3%
MND -4.3%
CPB -4%

So pretty much 15-20% retracement for most of these day. Granted that they've ran pretty hard since Feb.

peter2 · 4 May 2012

Add IMD, BOL, WOR to the list.

It might only be profit taking but there are no buyers stepping in. Bid depth's are very thin.

It's an eerie market atm. It's almost as though corporate investors think there will be a period of no growth. A sort of recessionary hole.

skc · 4 May 2012

peter2 said:
Add IMD, BOL, WOR to the list.

It might only be profit taking but there are no buyers stepping in. Bid depth's are very thin.

It's an eerie market atm. It's almost as though corporate investors think there will be a period of no growth. A sort of recessionary hole.

Wait till we get to a stage where PE 8x is the new norm...

peter2 · 4 May 2012

Sorry I don't understand the consequences of your FA jargon. (I'm a chartist )

If it means that prices may go lower, then yes we are already seeing that and I'll wait to see what happens at prior resistance levels (should be support).
If it means that prices may stay in a smaller range then I'll have to get a different trading plan.
If this means that prices won't trend as much, then

skc · 4 May 2012

peter2 said:
Sorry I don't understand the consequences of your FA jargon. (I'm a chartist )

If it means that prices may go lower, then yes we are already seeing that and I'll wait to see what happens at prior resistance levels (should be support).
If it means that prices may stay in a smaller range then I'll have to get a different trading plan.
If this means that prices won't trend as much, then

Just responding to your comments re: low growth.

PE is simply price/earning multiple. When times are good and people are optimistic about growth, PE multiple expands as the market is willing to pay more per dollar of earning. The opposite is true - when people are not expecting growth, PE multiple contracts as the market is willing to pay less per dollar of earning. This can happen independent of actual changes in earning.

Here's a good recent article on this...

http://www.fnarena.com/index2.cfm?type=dsp_newsitem&n=0AEA99D7-92BF-277F-0AB3CD018878627A

Muschu · 4 May 2012

Competitiveness must be extreme in this area and margins tight... But perhaps fear among investors is an even bigger factor.

So_Cynical · 4 May 2012

Muschu said:
Competitiveness must be extreme in this area and margins tight... But perhaps fear among investors is an even bigger factor.

Mining Services is a better dividend paying alternative to the miners...but still a proxy for the miners and metals and the BRIC bull, resources super cycle and all that...so if the China/BRIC bubble bursts the Mining Services stocks will get hammered too.

skc · 28 November 2012

skc said:
These guys are getting a nice royal a$$ kicking today.

DCG -8%
MAH -7%
LCM -7%
SDM -6%
ASL -6%
NWH -5%
EHL -5%
BLY -4.3%
MND -4.3%
CPB -4%

So pretty much 15-20% retracement for most of these day. Granted that they've ran pretty hard since Feb.

NWH with a poor AGM update today spooked the sector once again.

Sometimes I wish I am a hedge fund manager and can just hold big shorts on a macro basis.

The question is - given the choice - do you now short the weakest or the strongest?

Code Price at last post Price today Change
DCG , 2.92 ,2.23 , -24%
MAH , 0.675 ,0.285 , -58%
LCM , 1.035 ,1.07 , +3%
SDM , 1.99 , 0.815 , -59%
ASL , 3.78 , 2.05 , -46%
NWH , 3.56 , 1.48 , -58%
BLY , 3.85 , 1.33 , -65%
MND , 21.09 ,21.83 , 3.5%
CPB (ALQ) , 12.58 , 9.63 , -23%

Incidentally it was ALQ's half year outlook statement that totally spooked the sector (plus bad mood in the general market) back in May. It looks like PE ~4x is the new norm for these guys.

peter2 · 28 November 2012

IMD , 2.55 , 1.265 , -50%
EHL , 0.97 , 0.515 , -47%
FGE , 6.07 , 3.68 , -39%
DSB , 0.88 , 0.57 , -35%
SVW , 9.77 , 7.34 , -25%
WOR , 27.25 , 24.52 , -10%

More huge % price drops in this sector since 4May12. Although the outlook was poor six months ago the percentage falls are huge.

Are we there (the bottom) yet? Not yet IMO.
They may need another six months, some M&A and China stimulus.

odds-on · 4 April 2013

I am currently following ASL, BLY, EHL and NWH. All of them are falling and long it may it continue. These mining services stocks are starting to get cheap again, hopefully they will reach the lows achieved before Xmas.

Low PE + Low Price to NTA + Double Digit Dividend Yield = Cheap

The big question for me is do I stock pick like last time (BLY and ASL) or just buy a basket of them? Thoughts?

Cheers

Oddson

skc · 4 April 2013

odds-on said:
I am currently following ASL, BLY, EHL and NWH. All of them are falling and long it may it continue. These mining services stocks are starting to get cheap again, hopefully they will reach the lows achieved before Xmas.

Low PE + Low Price to NTA + Double Digit Dividend Yield = Cheap

The big question for me is do I stock pick like last time (BLY and ASL) or just buy a basket of them? Thoughts?

Cheers

Oddson

Not actually agreeing or disagreeing with your premise... but picking the right stock is very important imho.

Minerals vs oil and gas exposure.

Capital works vs ongoing mining operations.

Balance sheet strength.

Australian only or global locations.

Services only or products.

Take ASL and BLY - while they appear to be similar... 12 months ago they were both $4. Today ASL is $2.55 while BLY is $1.15. You can definitely lose less by choosing the right stock.

odds-on · 4 April 2013

Minerals vs oil and gas exposure - Not fussed.

Capital works vs ongoing mining operations - Not fussed.

Balance sheet strength - Strong balance sheet. Plenty of cash etc..

Australian only or global locations - Global customer base.

Services only or products - Not fussed.

Balance sheet strength and customer base are key for me.

BLY is for gambling.

So_Cynical · 4 April 2013

There is a big bottom coming for the mining services stocks, when the resource boom development spend actually starts to fall, that's when it will get interesting...i hope to restrain myself until then.

chops_a_must · 5 April 2013

There are some good companies with decent performance in this space. Just have to think a little laterally.

For instance, TOX and MRM, not purely mining services, but in the space and performing well.

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