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MAD - Mader Group (1 Viewer)

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The Mader Group provides specialised contract labour for maintenance of heavy mobile equipment in the resources industry from an in-house pool of skilled employees. The services provided include maintenance labour, feld support (on-site labour with support vehicles and tools), shutdown maintenance teams (for major overhauls), maintenance workshops, training of maintenance teams, and a range of other ancillary services.

The Mader Group generates the majority of its revenue by providing various types of contract labour services at an hourly rate per tradesperson provided. These payments are either made under service agreements, at previously agreed hourly rates or, in a minority of cases, on an ad hoc basis.

It is anticipated that MAD will list on the ASX during September 2019.

https://www.madergroup.com.au
 
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I'm going with MAD for my Feb stock pick. I have 3 reasons.
1. aus_trader mentioned it in the potential breakouts discussion and he seems good at understanding charts.
2. The 3 letter acronym for the company is quite mad :)
3. Looks like nobody has noticed it much going by the amount of posts in this thread.
4. It's making money, good money and is securing new contract work. Also they had a bit of a change on the board recently that might (or might not) push things along. Guess more of that will come in Feb.

Wait, that's 4 reasons. Oh well, that will have to do.
 

Dona Ferentes

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I'm going with MAD for my Feb stock pick. I have 3 reasons.
1. aus_trader mentioned it in the potential breakouts discussion and he seems good at understanding charts.
2. The 3 letter acronym for the company is quite mad
3. Looks like nobody has noticed it much going by the amount of posts
(I hope that this incarnation has a better run than the earlier version Maverick Drilling & Exploration. Now there was a promise high and deliver low outfit if ever there was one.)

The board and management seem competent and experienced.
Luke Mader : Founder of Mader Group. Trade qualified with 20 years’ experience in the mining services industry. Cultivated a 1,400+ workforce after realising an underserviced ‘niche’ whilst working in marketing for a Caterpillar dealer network

Growth opportunities:
• Increasing forecast mining maintenance expenditure
• Ongoing production growth in key commodities
• An industry trend for equipment to be used longer before replacement
• Significant capital investment in 2011 - 2012 has resulted in an aging mining equipment fleet for many mining companies


Outlook
Australia
  • Targeting significant levels of unfilled customer demand throughout Western Australia as border restrictions continue to ease
  • Large addressable markets remain for ancillary maintenance services with continued scaling and a dedicated focus on fixed plant, port and rail maintenance
  • Strong recruitment environments in New South Wales and Queensland presents headcount growth opportunities
  • Labour mobility expected to improve as state border restrictions ease
North America
  • Strong growth trends expected to continue in a large remaining addressable market
  • Strategy to be operational in Canada by Q4 FY2021
Rest of World
  • Developing plans for bolt-on acquisitions that add strategic value to the Mader business
  • Continuing to assess ancillary service and related industry opportunities
  • Global travel restrictions have temporarily limited our Rest of World operations however demand remains strong and we expect that activity levels will normalise when international travel resumes
Strategic Diversification
  • Strong levels of customer demand throughout target regions. Continuing to assess risks to health and safety prior to entering new jurisdictions.


Could be a new MND?
 
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Uh MAD !! Remember it well. Another promising small cap that started well, jumped high and then fell in a heap. Had as its premise picking up a lot of small old oil wells that still had some useful output but were not profitable enough for the big majors. It seemed like a good transparent little earner.

And then poof. Up in smoke. Hope the reincarnation has a better future. :)
 
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I found this business doing a search for high ROE/low PE companies about a month ago. Good origin story with founder who saw a need and delivered with a consistent focus on the team/operators on the ground and is still involved.

High ROE with strong forecast growth in the US/Canada and local mining in Australia. Exposure to mining with a hedge against a downturn in commodity prices as miners need to keep producing and that requires maintenance.

Only concern/thought I had was the performance of this company verses an OEM like ANG who has complained of order delays up until lately where they've procured a large number of orders - highlighted in the forecast graph they provided in their update today below.

At what point does a miner switch to from OPEX to CAPEX in relation to fleet management? How big of an impact will it have on MAD? the majority of their trades are Heavy Diesel Mechanics so assume there will always be a need to quick reaction repairs in field.

1614072096585.png
 

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