Fowci Posted November 22, 2015 Share Posted November 22, 2015 Some depressing reading on Australian mining equipment - http://www.abc.net.au/news/2015-10-28/heavy-machinery-prices-slashed-at-auction-mining-downturn-bites/6892966 Everyone who is relying on "conservative assumptions" about book value for mining services companies should read this article. Very eye-opening. I'm winding down some mining services companies positions (keeping others) after reading that. Link to comment Share on other sites More sharing options...
Max Alpha Posted November 23, 2015 Share Posted November 23, 2015 That article is misleading in the sense that it is comparing the prices of purchasing each item new versus selling a 20 year old machine in need of a $700k rebuild for scrap value. The sentiment is correct though. Items that a few years ago would have sold for a couple of hundred thousand are now selling for 1/6 of that. There is simply no market for this equipment in a forced sale because there is no end user. If Emeco were forced to liquidate their fleet equity holders definitely wouldn't get a cent. The assets they have sold have been through more of a drip feed process where they advertise them for sale and wait for a buyer to arise over an extended period of time (which could be years). Link to comment Share on other sites More sharing options...
tombgrt Posted August 8, 2016 Share Posted August 8, 2016 Anyone still following this one? It seems that the share price jumped from 0.04 AUD to 0.07 AUD after operational update. http://www.emecogroup.com/upload/pages/2may2016-market-third-quarter-operational-update-20160804082236/20160804_fourth_quarter_operational_update.pdf?1470668471 Link to comment Share on other sites More sharing options...
redhots Posted September 23, 2016 Share Posted September 23, 2016 Emeco, Orionstone and Andy's Earthmovers to merge in $686m deal http://www.afr.com/business/mining/stronger-together-emeco-holdings-and-rival-contractors-merge-20160922-grmfd1 http://www.theaustralian.com.au/business/dataroom/emeco-seeks-20m-to-merge-with-orionstone-andys-earthmovers/news-story/6d3b93d2bcb0b5def3b118e3690e65df emeco.pdf Link to comment Share on other sites More sharing options...
tombgrt Posted January 24, 2017 Share Posted January 24, 2017 Very meaningful improvement: http://www.emecogroup.com/upload/pages/20170124-second-quarter-operational-update/201070124_second_quarter_operational_update.pdf?1485266472 Link to comment Share on other sites More sharing options...
LR1400 Posted January 24, 2017 Share Posted January 24, 2017 Some depressing reading on Australian mining equipment - http://www.abc.net.au/news/2015-10-28/heavy-machinery-prices-slashed-at-auction-mining-downturn-bites/6892966 As others noted, the article compares new versus 20 year old, not apples to apples. This seems premature now. Had they (and presumably their financiers) waited one year, they most likely would've been fine, if not great. In one year the price of coal doubled. Link to comment Share on other sites More sharing options...
tombgrt Posted July 3, 2017 Share Posted July 3, 2017 http://www.emecogroup.com/view/investor-articles/20170703_emeco_enters_into_strategic_asset_swap Link to comment Share on other sites More sharing options...
tombgrt Posted October 10, 2017 Share Posted October 10, 2017 Sold my shares for near 150 % gain today at 0.22 . Became too big and was mainly speculative position. Tough call as it could easily go much higher later on fundamentals. We'll see! Link to comment Share on other sites More sharing options...
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