There have been a few resources services companies announcing floats recently, with the earth mover Emeco (which we reviewed in last week's Float Focus) lining up two weeks ago and rock crusher Mineral Resources putting itself forward last week. Along the same lines, although perhaps with a little more refinement, Coretrack steps into the spotlight this week, with technology that helps oil and gas explorers collect core samples for testing.
So what does this demand for services tell us about the resources sector at the moment? Well the main thing is that it's very busy, but that's hardly a great surprise. In our cover story to issue 199 of The Intelligent Investor, titled A fresh spin on the supercycle, we discussed this demand for exploration and explained why it doesn't necessarily signal an ongoing boom for resources stocks. But there's a lot of money floating around the sector at the moment, and perhaps a fair bit of it will end up with the services companies.
Excerpt from Intelligent Investor Float focus.
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