IMD- A little gem

[lewinsky]

Last year I did some research into this company. I posted a message saying it was one to watch. Since then the company has gone from 12 cents to 23cents. This has allowed me a few beers over the summer.
Keep a watch on this company. I received a brokers research report on it today from Tolhurst Noall rating it as a buy,with a 12month target of 32cents.
It is a leading mining products and services company,providing drilling fluids,tools and equipment and drilling services and mineral processing.
It is benefiting from the increased activity in the resource sector in Australia.
It has a 49% interest ina jv in Saudi Arabia that supplies drilling fluid and chemicals to the onshore and gas industries. This has been the source of some problems in the past but management are believed to have soughted this out and they have won some significant contracts there.
The broker is expecting a dividend to be paid this year.
Do your own research,but I like it

[foodee]

32 cents fc!! Great if it gets there

[lewinsky]

please define fc?

[newz]

Lewinsky
Don't know about Tolhurst, but I took a look at it after it was tipped by Dominic Banana on HC.
The Saudi JV looks interesting.
Best wishes.

[foodee]

lewinsky
apology: fc is to mean forecast

[lewinsky]

Half yearly result posted today. NPAT up 76% to $1.27million on revenue of $19.37million up 32%.
JV in Saudi a small loss but expected to be profitable by year end.
Cash from operations $1,239 million.
Balance Sheet looks strong.
More upside here I think.

[foodee]

Increasing volume and sp - what's up

[Lizard]

Imdex Q3 newsletter shows they are on track to achieve a NPAT of $3 - $3.2m. This equates to P/E of 8.1 at current price (23cps). Minerals exploration continues to remain strong and a continuation of current trends in existing businesses could result in a 2006 profit of around $4.5m. In addition, the company proposes to acquire Samchem (South Africa), which could provide a further $0.5m in profits.

The minerals business is to be sold (effective 1st July) and the money from this sale ($6.3m with a further $1.5m conditional payment at a later date) will be used to acquire Samchem (50% cash purchase = $3.8m). The remainder will be used to retire debt, which should then put the company in a position to be able to pay dividends.

Therefore, my prediction for 2006 is eps=4.0cps, dps=2.0cps, share value = 40cps+

This is a speculative share due to the small size of the company and low liquidity.
PDYOR

[Lizard]

As per my post on SS yesterday:

Came in spot on at $3.1m NPAT...

...but that included a $1.4m write-down of mineral assets (which MAY be recoverable).

Bullish on dividends for 2006.

s.p. risen a little to 24cps, so P/E now at 8.8.

2006 prospects - full tax paying position? So guessing $4.5 - $5.0m NPAT based on 15% revenue growth and no write-offs. Guessing 1.5cps dividend. So 2006 P/E = 5.0-6.1, with yield at 6.25% net (not sure how much they could frank).

My full year 2006 valuation is 50cps.

Cheers,

[lewinsky]

Hi Lizard,
Thanks for the post and the accuracy of your forecast. I like the prospects for IMD. Balance Sheet looking good with low gearing and now generating good operating cashflows.
Looking forward to a dividend. But like PCG it looks on a fairly low PE. Hope your yr end share price valuation is as accurate as your profit forecast.
Regards