FWIW Tim Boreham Criterion (16June 2015) Arrium share...

FWIW    Tim Boreham Criterion  (16June 2015)
Arrium share performance Source: TheAustralian  
Arrium (ARI) 15c
Every dog will have its day.
That’s the gist of a telling “league ladder” from Ord Minnett, showing the best ASX 200 share performers over the past three months.
Of the top 20, nine are blighted miners and a further five are in mining services, including the shunned UGL with a 65 per cent return.
Driller Ausdrill is up 16 per cent for the quarter, but still down 52 per cent on the year.
So what hope of a bounce for the once proud steel and grinding ball maker and reluctant iron ore miner, which was pitched from the ASX 100 index last December? Sadly, yesterday’s corporate update failed to provide the catalyst for a rebound, although on its reckoning the Middleback Ranges export operation will realise a slender margin of $4 a tonne on its ore.
A key concern is Arrium’s net debt of $1.75 billion-$1.85bn. While the company may be well within covenants, it has little to show for last year’s monster $754 million capital raising that was meant to have reduced debt from $1.7bn to a pro forma $976m.
Still, with a skerrick of good ferrous fortune and judicious asset divestments, Arrium has the scope to go from flea-ridden dog box to pride of place on the chaise longue. Spec buy.