Picks & Shovels

[CAB SAV]

Hi, Just thought new players to the market might want to research "picks & shovels" stocks- Stocks that supply to the mining industry. Look at it this way, they don't care if whoever they drill, supply services or accomodation for fail or succeed. They still get paid.
Few to look at are-SWK,SDM,AJL,MND,IMD,RCR,PWK,LYL,TBG,MSL

 

[JTLP]

ANG

Expansion into America and have some nice recco's out on them. Was in earlier last year, sold out for a nice gain and seems the wisest move thus far.

Interesting to note that with increased costs that these companies may actually be in less demand, as only the most economical mines and such will be operated. Agree/disagree?

 

[CAB SAV]

Can't see demand falling off a great deal as we are still only in the beginning of a mining boom and there will be a lot more IPO's listing in the next few years when the market starts to turn around. Some of The group of stocks i mentioned are ones which my eldest son has, some from when they listed. With the current downturn in the market these have fallen to only a 55% profit from hundreds up.
Just trying steer newcomers away from financials for the moment

 

[michael_selway]

ANG

Expansion into America and have some nice recco's out on them. Was in earlier last year, sold out for a nice gain and seems the wisest move thus far.

Interesting to note that with increased costs that these companies may actually be in less demand, as only the most economical mines and such will be operated. Agree/disagree?

i cant see USA being a good place to invets in right now!

btw does WOR, LEI, TSE, UGL, BRN, fall into this categorie?

thx

MS

 

[CAB SAV]

Hi, Just thought new players to the market might want to research "picks & shovels" stocks- Stocks that supply to the mining industry. Look at it this way, they don't care if whoever they drill, supply services or accomodation for fail or succeed. They still get paid.
Few to look at are-SWK,SDM,AJL,MND,IMD,RCR,PWK,LYL,TBG,MSL

While I'm waiting for my fathers day present i thought would check performance of above from orig. post 21/6
Nothing has changed, suppliers still make money whether your mining stock finds its bonanza or not.AXO was 5480 pts back then, now down to 4949. 7 of the above are up,3 down, 8 paid divs,6 fully franked.

 

[grace]

While I'm waiting for my fathers day present i thought would check performance of above from orig. post 21/6
Nothing has changed, suppliers still make money whether your mining stock finds its bonanza or not.AXO was 5480 pts back then, now down to 4949. 7 of the above are up,3 down, 8 paid divs,6 fully franked.

A couple others I hold are AAX (Ausenco) and MIN (Mineral Resources). MIN in particular continue to issue fantastic profit upgrades. Also holding AJL as someone else mentioned it here.