What makes IMD such a joy to analyse is its simplicity. This is a straightforward manufacting business.
1) Drilling fluids&chemicals. These are primarily used to lubricate drill bits. Used to drill for all minerals and oil&gas. The highest exposure is to gold. If you believe that the high rate of drill rig usuage will continue... then so to will sales rise for IMD. main competiter is Haliburton who concentrate on oil&gas mkt which is minor share of IMD sales. Hence make stuff for $1.00/unit and sell for $1.35.
2) Manufacture down hole instrumentation. As drilling for minerals and energy gets deeper and more expensive... so too is the risk of snapping drills/missing ore bodies etc. IMD's instrumentation is world class and most drillers depend on it. Competitors are small family owned businesses.
Hence mkt worldwide is HUGE. IMD is competitive and uses same salesperson to visit drill-sites and sell BOTH products. As long as gold/oil/metal prices stay high... so will demand for IMD remain strong.
IMD Price at posting:
$2.19 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)