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MND - MONADELPHOUS GROUP LIMITED


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  • 2 weeks later...
  • 3 weeks later...

hi 007

 

Whatever the reason is (may be affected by LEI allegation?) , MND going down is the fact.

 

The first red arrow was the first warning

 

second red arrow basically was a get out now signal

 

MND is now oversold by the look of RSI . Bounce may be imminent?

 

Hope this helps

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  • 2 months later...

After the recent rally, a pullback is quite in order. Especially after apparent accumulation on high volume, it's regulation Trinity.

 

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Support at $16.03 or better would suggest strength coming into this stock. (I'm not holding yet)

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  • 2 years later...

a revisit to MND - for what is meant to be a sector (engineering and construction) with high exposure to resource developments, this company has had some recent strength

 

- all relative though, I guess, (was $28 in the glory days of early 2013) and approaching 12 month highs . After slipping to $5.50 during the gloom at start of 2016, now trading above $8.50 and had a good few weeks

 

Always a good dividend payer, but I guess 'old' metrics like PE 11 and yield 8.9% are not that meaningful

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ 2015/16 revenue anticipated to be around 25 percent lower than 2014/15

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Committed to maintaining a strong balance sheet and pursuing investment opportunities that support long term market growth strategy.

 

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Awarded ~$1b of new contracts and contract extensions

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Strong safety performance ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“10% improvement

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Cost reduction program achieved annualised savings of ~ $24.3m

 

strong balance sheet, plenty of cash in bank, no debt, but in this competitive market, margins must be under some pressure

 

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Australian market conditions to remain challenging with customers minimising capital and operating costs

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Opportunities for new major construction contracts likely to remain at low level

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Outlook for maintenance is positive and Company in a strong position to capitalise on opportunities

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Focus on expanding presence in water infrastructure markets in Australia and New Zealand

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  • 3 weeks later...
Investors with courage have doubled their money in just a few months in the most unlikely place. Several of the bigger mining services firms, and companies supplying the oil and gas sector, have made a sharp rebound to deliver handsome profits on paper for those who had the timing right.

 

But experts say piling in now isn't for the faint-hearted because earnings "visibility" is still somewhat hazy.

 

Heavy engineering firm Bradken has almost tripled its share price since early April to around $1.65, while former sharemarket darling Monadelphous Group has almost doubled since mid-February to $10.50. Larger stocks with more exposure to the oil and gas sector such as labour hire provider Programmed Maintenance have jumped 17 per cent in the past week to $2.06 and more than doubled since mid-February. WorleyParsons has more than doubled since mid-February to around $7.10.

 

It's always a tough call for investors to call the bottom and it's usually only apparent in hindsight when the big gains have gone. In mining services is it always tricky because of a lack of "visibility" of future earnings streams.

 

In simple terms, those companies get punished much harder in a downturn because they are second-line entities at the whim of big miners and oil companies, which slash capital spending hard when commodity prices fall, and demand better terms from suppliers.

 

The service providers do their best to cut costs but they are left with high fixed costs inside their own operations and expensive equipment which sits unused. At the same time, uncertainty stemming from whether other contracts may also be put on ice damages investor confidence.

 

Share prices spiral down fast in bad times, but when there is some semblance of stability and a feeling that the worst may have passed, share prices bounce much harder among the beaten-down stocks. On the flipside, during boom times the exuberance among investors for services firms is something to behold. Monadelphous was at $27 in early 2013.

 

The renewed sense of stability has been around for a few weeks and has permeated through to share prices. But going higher from here may prove a stretch.

AFR
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