Imagine the share price result would have been on this announcement if the recent orchestrated sell down didn't happen?
we were sitting at $1.05 before the big sell down over nothing. We are only happy with a share price of 94c after the result as we have been conditioned over the last month to think it is a good result (based on where we were two weeks ago) . We have forgotten it is not a good result if we considered where we were a month, 3 months or 12 months ago.
as for a downturn that could damage mining service companies: mining downturns are like recessions in other parts of the economy. Last time we had a recession mining was doing ok and china buying resources kept Australia out of financial trouble.
as long as global populations increase and general wealth increases markets will always trend up in the long term.
also, we have a big buffer in the balance sheet. If we lose a contract we could sell equipment that are worth twice on our balance sheet compared with what they are valued at on the share price.
PRN Price at posting:
94.0¢ Sentiment: Buy Disclosure: Held
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