Thoughts on contractor MACA (MLD)
Hi,
James and Harry
I have noticed that MACA Ltd (MLD) has advanced around 20% over the past 3 weeks. Can I please have your view on this mining and civil construction company.
Thank you
Kind regards
Errol K
The Latest Q&A
Answer
Hi Erol,
MACA Ltd (MLD) has indeed bounced in the last few weeks similar to its main rival Emeco (EHL) but it is unfortunately just a blip at this stage after the stocks plummet since January. As we often say even a ping-pong ball falling down the stairs will bounce occasionally. The stock has been hit by the same influences that have dragged down the broader mining services sector. It is cheap and as the market searches for value I can understand why this is attracting some buyers.
At this stage, we have no interest in this $340m mining services business preferring both NRW Holdings (NWH) and Monadelphous (MND) within the embattled sector, while we also bought SRG Global (SRG) today (Friday) in the Emerging Companies Portfolio, not as cheap but a better quality operator in our view involved in critical infrastructure.
