Bullish Sign? - Bounced off 200 EMA, page-3852

Thank you pbawley for the sharing.
The lack of share price love does have me feeling a bit bereft and shut down - silly I know, especially as I have resisted (yet concurrently taken on board ) messages all along the way that the sector is … what did Intelligent Investor’s Gaurav Sodhi about five years back ? … ah yes …..He said the sector is “lousy” .

(…At least -despite the ‘sting’ - I have to laugh at how strongly still I still resist that word being applied to NRW! )​

The video basically supports ‘lousy’ but -according to Steve Johnson and Alex Shevelev at Forager - the bit that hurts has a cotton wool ball loaded with calamine lotion heading slowly (very slowly) towards the spot …to arrive in around six months to twelve months time … or ‘maybe two or three years’
Hmmm.

For anyone who did not watch, they are speaking about Forager’s 4% long term fund holding in Macmahon and Perenti.
And in retrospect it’s all a bit specifically funereal, and at the same time vague.

Lot of work going on but labour costs have become a big focus ​

…There’s cost inflation across contracting businesses in general.​

…Fixed price contracts are troublesome, but good relationships with miners means costs can be passed on.​

Yet they say Perenti and Macmahon are not priced as if recovery is expected because the market has taken the attitude “Shoot first on the expectations of lower near term profitability and ask questions about profitability in the long term later …”​

And then the reaffirmation PRN and MAH are currently priced at worse than modest expectations - they are priced as if a repressed level of earnings will continue for ever.​

​

Well.
Is NRW in the same boat ?
- It is priced at worse than modest expectations and hovering on a fine line that I expect will not hold against bad news from any direction.
-Yet it has intentionally diversified away from straight mining so as to have other boats in its’ fleet.

-And unlike both Perenti and MacMahon it is still run by the man who ‘built the business’ and by the team who bought it back from a near genuine grave when Sodhi was washing his hands of it because the sector was just too lousy.

Do those companies in the video have the same quality of ‘heart’?​

And does ‘heart’ even matter?
It may not be intelligent investing , but for me it does.
I am proud to support NRW, I trust the leaders and I am grateful for all the learning and other benefits the company has led me too even while I kick myself for not being more canny about letting go of more in my ‘trading portfolio’.

Thanks again pb .

cheers