Topic: How To Invest

Power Growth Investor Hotline – Friday, September 11, 2020

Article Excerpt

MAJOR DRILLING GROUP INTERNATIONAL INC., $6.65, is a buy for aggressive investors. The company (symbol MDI on Toronto) is a large contract driller that mainly serves the mining industry. Demand for Major’s specialized drilling services, especially from senior gold producers, is beginning to recover. That has pushed your shares up 194% since they plunged to a low of $2.26 in March of this year. In the three months ended July 31, 2020, the company’s revenue was down 23.9%, to $89.4 million from $117.5 million, a year earlier. More specifically, revenue in the Canada-U.S. region decreased 24.6% to $46.0 million. However, that region saw continued shutdowns in the first part of the quarter due to government and customer-imposed restrictions caused by COVID-19. However, by quarter end and under enhanced safety protocols, operations had resumed on a number of projects. South and Central American revenue decreased by 40.4% to $19.5 million for the latest quarter. Operational challenges in relation to government or customer-imposed restrictions regarding COVID-19…