Significant upside in ALS

Matt Haupt, Portfolio Manager of WAM Leaders (ASX:WLE), has shared his bullish assessment on the outlook for mining services company ALS. Haupt says; “The reason we like this stock at the moment is because we think we’re in the midst of a recovery in the mining sector after a very tough few years. A lot of mining companies we have spoken to have raised money just recently and are starting to explore again. We’ve also seen existing miners are starting to increase their volumes - which has been a steady trend over the last 12 months.” Haupt says the newly invigorated mining sector should allow ALS to increase their margins off the current cyclically low levels. “Currently margins are around 10%, however, back in the boom they were around 30%. So even if they double their margins we think there is significant upside to this stock.“ A recording of the recent WAM Leaders investor call is available here: (VIEW LINK) and the slides are attached below.