Suppose the problem is proving that they did it intentionally. And if they did, still doesn't explain how their profit is still so high up - unless they profited due to a ponzi as well. There are mining and construction stocks these days with horrendous FY14 performance but are making a steady recovery. Guess you can't take anything at face value.
Profit means little in the stock market (you can cook profit), learn to read the cash flow statement and most of your answers maybe lying there.
I dont have any holding in this business just general comments so I don't know their books but cash flow statement and free cash flow is a good figure to go by.
Cash flow from Op activities (half year 2015) +64m which is stellar
CF from investing (loans and purchases) -38m
CF from financing (mainly due to dividends paid) -36m
Essentially if they didn't pay any dividends their cashflow would be amazing. Can't blame them for that can you?
I get it. Essentially they prevented any real growth due to paying out more dividends than what they get in their hands that year. Still, you would expect the price would halt or grow slowly as they're still making a lot of $.
I have been deeply wounded by MLD this morning. It is one of my larger positions and it crashed >20% this morning. Anyone shares this same painful experience as me? I am going to hide in silence and contemplate over this loss for a while. This is not the first time mining-related stocks gap down huge on me without warning. I need to re-look at mining-related stocks. Anyone can share their experience?
Latest ASX announcement.
http://www.asx.com.au/asxpdf/20171113/pdf/43p56gfym5gs81.pdf
It does not read so bad to justify a >20% crash in the morning opening. Maca even states that it remains very positive on its future pipeline of work. Still, my 20% painful loss ...
Mining contractor Maca is putting the finishing touches on a capital raising to fund its purchase of Downer's Open Cut Mining West division for just under $200 million. ..... sources said the company had Euroz Hartleys Limited in its corner to help it stitch together the deal, which would see it raise $80 million-odd in fresh equity.
Downer told the market last week that it was in discussions with Maca to offload the business unit. Although it is selling Open Cut Mining West, Downer will still hold onto its Open Cut Mining East, Underground and Otraco mining services units.
The purchase is a chunky bite for the $311 million Maca, which posted $808 million revenue in fiscal 2020 and $120.4 million EBITDA. Maca's shares have performed strongly through the pandemic, and are trading up 12.6 per cent to $1.16 year-to-date.
I bought it a few weeks ago based on its high dividend yield.Maca is coming under focus as a takeover target, according to industry sources.
The mining services provider’s stock price is hovering around 84c after trading at more than $1 in 2019, with its market value at about $287m.
An attraction for a prospective suitor of Maca is that commodity prices are soaring and most in the market see the business as undervalued.
It only generates about 6 per cent of its revenue from the coalmining industry, which is out of favour with investors.
The majority of its revenue comes from other types of mining, where it generates 61 per cent, and 24 per cent civil construction, an area set for growth in the years ahead at a time when the government is set to increase spending on infrastructure construction.
The remainder is from infrastructure maintenance, crushing, international mining and its Maca Equip business.
Well, I should have listened to you.then i wish you luck ,
i am very wary on mining service companies now after being BADLY scorched with BLY , ( and not such a happy time on others ) i do have some ( like MIN and recently sold out of IGO . )
but Maca showing a pulse , and there is plenty of M&A activity
it would be interesting to see who lobs in a bid
Speculation is mounting that the CIMIC-backed mining services provider Thiess is considering a buyout of its listed rival Maca.
Suggestions surfaced in July that a party was running the ruler over Maca, and at that time its share price was around 84c.
Its shares last traded at 76c with its market value now at $261m.
The latest talk is that Thiess is taking a look at the business with the view of an acquisition to reduce the proportion of earnings it gets from coal-related activities.
The thinking is that the idea is to pivot the business away from coal ahead of plans by its owners, CIMIC and Elliott Management, to sell the business at a later stage.
CIMIC had been looking for a buyer for Thiess for some time before the US-based fund Elliott Management agreed to take a 50 per cent interest in a deal that valued the company at $4.3bn and saw between $1.7bn and $1.9bn in proceeds delivered to CIMIC.
However, as part of the deal reached a year ago, Elliott has the right to sell its interest in Thiess back to CIMIC in between three and six years.
Thiess is the world’s largest mining services provider and considered the best in breed in the industry.
But in the past buyers have not been keen to pay up due to its coal exposure and the fact that services companies typically have low margins and are capital-intensive.
However, CIMIC’s European parent, the ACS-controlled Hochtief, has been keen to pay down debt and sources say it still has hopes of selling the business in its entirety.
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