These two companies have had serious issues of late, but they're worth a look. They're in Australia and listed on the Australian Securities Exchange:-
1. Bradken
They've been impacted by the mining collapse. They're a foundry and general engineering business, making railway equipment and the like. I call these stocks metal bashing industries.
No dividend, they don't make money. This stock is a total punt. When doing well though you can expect a price over AUS $6.00. From their current 84 cents, that's a staggering return if you're lucky.
2. Macmahon
Macmahon has also been impacted by the mining collapse. Their business is providing mining services. They're the contractor on site actually doing the work. They have the mining machines; drill and blast, crushing and screening, materials handling, mine planning, you name it. From the current 12 cents, if they come back (they may not, be warned), you're looking at a price in excess of a dollar.
These stocks do not afford the investor any margin of safety. They're a gamble. Check them out as I think you'll find they're better than you expected.
[Update @ 24 March 2019; I see people are now seeing this post from years back, check this: Macmahon are still a punt at 23 cents (100% gain from my tip), while Bradken were taken over by Hitachi for $3.25 per share, which is a gain from the tip of 386% = beat that!!]
No comments:
Post a Comment