You don't have credit card details available. You will be redirected to update payment method page. Click OK to continue.
It looks like the mining sector has started an uptrend with lots of little mining stocks suddenly coming to life. For this reason I decided to buy the companies that service these stocks, ie WOR, MND and ASL. I was up $12,000 on MND when it tanked and I am up significantly on ASL. WOR is probably past praying for, so I got out of it for a small profit. However, I haven’t given up on MND. What are your views on ASL and MND?
A: I think you are brave buying into the mining service companies.
While commodity prices might have found a bit of a floor and the major miners have done a lot of work to improve their balance sheets/increase productivity/cut costs – I am not sure that this is going to translate into a lot of new work for the mining service companies. The big miners are by in large still in cost cutting mode.
Companies servicing the gold sector are obviously an exception.
ASL has had a huge rally from circa $0.22 in February to $1.60. Brokers are negative on both – ASL consensus target price is $1.15, MND is $7.49.
