Topic: Growth Stocks

The Stock Pickers Digest Hotline – Friday, June 13, 2008

Article Excerpt

MAJOR DRILLING, $53.25, symbol MDI on Toronto, reports that revenues rose 34.1% in the three months ended April 30, 2008, to $170 million from $129 million. Excluding one-time items, earnings rose 42.1%, to $25.3 million from $17.8 million. Earnings per share rose 39%, to $1.07 from $0.77 on more shares outstanding. Cash flow per share rose 38%, to $1.49 from $1.08. In the latest quarter, strong demand for drilling rigs, especially for gold projects, boosted revenues and earnings. About half of Major’s revenues come from gold drilling. South and Central American revenues rose 47%, to $60.4 million from $41.1 million, despite a slowdown in Ecuador and Venezuela late in the quarter. The strong Canadian dollar and labour shortages held back Major’s revenues and earnings, but the company was able to raise prices due to strong demand for its services. High prices of nickel, copper, gold, silver and other metals will continue to spur exploration activity. However, Major Drilling’s exposure to continued high…