Most portfolios have a “dog” lurking in their midst and ours undoubtedly is mining equipment rental business EHL which although it’s doubled over the last year has failed to regain the vast majority of it’s COVID losses.
Emeco Holdings (EHL) -8.06%: gave back yesterday’s for similar reasons to Boral today. The stock ran yesterday on a solid result from peer Imdex (IMD) but Emeco didn’t really live up to the hype today despite posting half year numbers more or less in line with the street.
Emeco (EHL) +8.05%: Another beaten up cyclical that was out with a more positive update this morning, although from MM’s perspective it was simply a reiteration of guidance and a reinforcement of the path the company has been on over the past year. As they suggested today, the balance sheet is now the best its been since listing in 2006 and the trends on the earnings side are positive overall, although a bit lumpy. Weakness in coal prices hurt, however this is being offset by strength in Gold. All up, a decent update that was taken more as a relief by the market which seemed to think they would miss their stated EBITDA guidance of $115-118m for the half to Dec (consensus was $114m)
Emeco (EHL) provide heavy machinery to the mining & infrastructure sectors. They have operations in all key mining regions of Australia and customers include mining companies and contractors across coal, gold, copper, bauxite and iron ore. Emeco also owns new model ancillary heavy earthmoving equipment rental company, Matilda Equipment.