Thoughts on MLD & NXT
Hi there James and the team,
Can I get your thoughts on Maca (MLD)? Are they fundamentally good? Looking very oversold. Also, Next DC (NXT). How are they looking fundamentally?
Thanks
Kim
The Latest Q&A
Answer
Hi Kim,
MLD is a mid-size mining services business which has fallen fairly dramatically in line with the whole sector which is battling with cost pressures. They are fundamentally sound, simply going through a tough period. Yesterday we saw ALS (ALQ) report very strong numbers from their resource division which does testing. This is another datapoint that shows the mining sector is spending money on new mine development which has a positive read through for the contractors.
We continue to hold NRW Holdings (NWH) and Monadelphous (MND) because we believe they are cheap at current levels but it’s been an uncomfortable journey. We discussed NEXTDC (NXT) earlier in the week liking the stock around $11.
