Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, September 13, 2013

Article Excerpt

MAJOR DRILLING GROUP INTERNATIONAL INC., $7.28, symbol MDI on Toronto, is a large contract drilling firm that mainly serves the mining industry. In the three months ended July 31, 2013, Major’s revenue fell 54.4%, to $108.2 million from a record $237.6 million a year earlier. Earnings also declined sharply, to $1.5 million, or $0.02 a share, from $31.9 million, or $0.40. The latest earnings included $2.0 million of one-time pre-tax restructuring charges, such as costs related to layoffs. The company has cut its staff by 45%, or 2,300 workers, over the past year. Many of Major’s large- and medium-sized mining customers slowed their drilling activity in the latest quarter, and orders from junior miners dropped sharply. That’s because juniors are having a lot of difficulty raising funds in today’s uncertain resource markets. As well, high costs and new mining taxes forced the cancellation of many projects in Australia, while political uncertainty slowed work in Mongolia and Argentina. Finally, Mexico and Chile had…