Are mining service companies considered that bad that the entire sector is caned.
Looking at the trading update the forecast EBIT is $8m, which is almost double this time last year. Admittedly the share price has also doubled.
The second half where EBIT is forecast to be circa $22m which is 50% above last year. All analyst forecasts (about 6) have a growth in EPS forecast for the next 3 years (unlike MND and BLY)(for what it is worth MLD also has growth forecast).
Why then is the sp down? I have been buying over the past 2 weeks and probably should remove TTN from my watchlist and not worry about the short term drops. Also a 2% divi is not too far away.
Still believe the sp should be north of $3.20 (only a forecast pe of 10 at that price) but have been wrong in the past.
AUG Price at posting:
$2.09 Sentiment: Buy Disclosure: Held
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