The following is an extract from "Money Morning" and was written by that well known veterinarian Alex Cowie. (Also author of "Diggers & Drillers").
One company, Imdex (ASX: IMD) provides 'drilling fluid products, advanced down hole instrumentation, data solutions and geo-analytics services to exploration, development and production companies in the minerals and oil and gas sectors worldwide.' It's a fact that some of the companies that profited most from the Australian gold rush were those who sold picks and shovels to the miners. Likewise, companies servicing the more recent mining boom did very well. However, like most other mining services companies, Imdex has seen its share price tumble as the resource sector cooled in the last few years. A lower price means a better yield. The result is a yield now around 7.2%, and the company has a pretty good track record of paying up. If resources stocks recover, then mining services companies are a leverage play on that.
IMD Price at posting:
94.5¢ Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)