IDL 0.00% $1.27 industrea limited

re: Ann: China business secures record $19m g... Well done...

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    re: Ann: China business secures record $19m g... Well done chaps
    Terrific contract announcement, total vindication of the companies strategic ability IMHO

    A return to Handlebar Hill alongside further sales growth in China and other O/S markets will see a very strong 2H 2010, i expect suprises to the upside for this market leader.

    It has been a tough time for the sector, GFC really put the brakes on hard, IDL management imo have conducted themselves in a manner to be commended and have demonstrated that they have the goods !!

    IDL are clearly the market leader in their field in Chinese coal mines and the focus of this market is clearly shifting to best practise. The global market is huge. An early glimpse at a very big picture me thinks ?

    Recent weakness in sp's has been across the sectors (mining and mining services) and sentiment has been cruel, with sp's slashed (in many cases eg NMS) accordingly. Not to mention the wider market (fear rules).

    IDL has not been spared, although imo it has fared far better than many of its peers. Under the weight of a recent capital raising, the low volume trading of the Xmas period, a pause in the flow of positive contract announcements and (finally) a global 'correction' in equity markets it has proved far more resilient than i had hoped.

    World markets are jittery (rightly or wrongly) as the aftershocks of the GFC manifest themselves, capital is flighty. Seems to me that much of the recent fall in IDL's sp was as a result of triggered stop losses designed to protect s/t trading capital ( not that theres anything wrong with that lol), bargain hunters have done well imo the fundamentals are more robust than ever.
    The resumption of positive news flow and a return to more 'normal' market conditions (globally) will see support return to quality stocks tied to growth markets.

    IMO IDL represents genuine value here and increasing volume recently would support that.

    What does the year ahead hold ?

    More contract wins for IDL ? Certainly.
    Increased profitability ? Looks very likely.
    Expansion in to new markets and products ? Likely given track record.
    Increased dividend ? Possible.
    Acquisition ? Possible.

    SP in 12 months ?

    anythoughts ?



 
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