Digging for gems in mining services - a classic example of counter cyclical investing is occurring in the mining services sector which has this year been...

Livewire Equities

Digging for gems in mining services - a classic example of counter cyclical investing is occurring in the mining services sector which has this year been dumped by all the major investment houses and out of favour with shareholders. Many mining services companies have seen their share prices collapse as their big resources clients curtail investment. Although the mining boom has well and truly passed -miners will always need the mining services companies to supply them. And in the investor rush to depart the sector, several high-quality and well-run companies have seen their share prices sink. So how do you choose which company is good and which to avoid? Comfortable debt levels, operations that can easily be scaled back and the ability to cut costs. Another indicator is whether a company has a good range of blue-chip clients and is not dependent on a single project or commodity. (VIEW LINK)


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