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MSV - Mitchell Services

System

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Drill Torque Limited (DTQ) is one of Australia's leading mining and exploration contract drillers operating throughout Queensland, the Northern Territory, South Australia and Papua New Guinea.

Drill Torque's drilling services cover a diverse range of clients and commodities and are provided throughout all stages of the mine life cycle.

http://www.drilltorque.com.au
 
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Re: DTQ - Drill Torque

currently trading at 27 cents - a nice premium from float of 20cents

any followers ?

j c
 
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Re: DTQ - Drill Torque

I'm following it, currently very unappealing but those forecast FY2012 figures look tasty. Might buy in if it trades sub 30 cents for a year or so. Probably going to end up as one of those shares that I look at and would like to buy someday, but never end up buying.

JM.
 

skc

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Re: DTQ - Drill Torque

I'm following it, currently very unappealing but those forecast FY2012 figures look tasty. Might buy in if it trades sub 30 cents for a year or so. Probably going to end up as one of those shares that I look at and would like to buy someday, but never end up buying.

JM.

The industry is good, the forecasts are rosy. I will believe the forecast when the numbers get printed in a earnings report. It is such a small company there will hardly be any real following - so when the forecast becomes real there is probably time to get in. For all I know it could be the next DCG or it might tank tomorrow..
 

elephantboy

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Re: DTQ - Drill Torque

The industry is good, the forecasts are rosy. I will believe the forecast when the numbers get printed in a earnings report. It is such a small company there will hardly be any real following - so when the forecast becomes real there is probably time to get in. For all I know it could be the next DCG or it might tank tomorrow..

I got in little early on this one and have been averaging down since . They should be able to grow if they have the right quality management as drilling services sector should be growing strongly. They have already promised very high levels of growth, fingers crossed they can achieve it.

In the prospectus the management shares issued are in escrow for 2 years, so at least there is a window for them to drive growth before they may want to sell down. However I would like to know more about them if possible to set my mind at ease.

I am hoping they follow a similar share price pattern to another small mining contractor that listed last year call Mastermyne (MYE), it seems to be the case so for. however I have more knowledge of the quality of Mastermynes management.

I think they have good potential
 
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Re: DTQ - Drill Torque

held out well yesterday after the big dow drop, 13 cents might be a good entry point

j c
 

elephantboy

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Re: DTQ - Drill Torque

The critical factors I have been using to rate this stock:-
1. Dividends
They have recently indicated there intention to pay interim dividend for the first half FY11/12. A good sign they are progressing to meeting there targets.
2. Attracting Employees
Can they continue to supply quality employees to fuel there growth targets. They must demonstrate there commitment to finding/training/retaining. They need an ongoing news flow on the positive steps are they taking to achieve this?
3. Competition
There seems plenty of competition in this sector, not sure if there are as many in NQ. They need to continue to differentiate there strengths over there competitors.
4. Weather
Need good luck with the weather compare with last summers disaster
 

skc

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Re: DTQ - Drill Torque

4. Weather
Need good luck with the weather compare with last summers disaster

Profit downgrade. Blaming the weather for a 25-30% drop in revenue and 45-50% drop in EBITDA compared with prospectus forecast. The forecasts for FY2012 were $58.4m and $10.7m. So the revised figures are $40-43m revenue and $5.5-6m EBITDA. The NPAT would be ~$2.5-3m, or 2-2.2cps.

Only 13 of the 34 rigs operating... or 38% utilisation rate.

Trading at 13.5c so not a demanding PE, but missing prospectus forecast 6 months after listing by a whopping 50% is never a good look. Chart suggests 12c support but nothing below that.
 

elephantboy

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Re: DTQ - Drill Torque

Can't do much about the weather, however the promises for a pickup in activity need to be realized before anyone is going to commit more in this.
 
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Re: DTQ - Drill Torque

Wow, down to $0.10 today, this is starting to look interesting. Trading below NTA, the only fly in the ointment for me is how much work the can win going forward. I have a terrible history of investing in cyclical businesses like this.
 
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Re: DTQ - Drill Torque

I bought in a last year but sold at $.18 i think. I was watching it today and they were down %40 at one point on the back of bad news regarding one of their long term customers and continual bad news from management regarding weather and production. I like the mining services sector, however, i had the luck to steer clear of this one.
 
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Re: DTQ - Drill Torque

I bought in a last year but sold at $.18 i think. I was watching it today and they were down %40 at one point on the back of bad news regarding one of their long term customers and continual bad news from management regarding weather and production. I like the mining services sector, however, i had the luck to steer clear of this one.

Maybe now would be the time to buy if you could be confident they will gain customers instead of loose them in the future.
 
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Re: DTQ - Drill Torque

Maybe now would be the time to buy if you could be confident they will gain customers instead of loose them in the future.

Could well be, on the other hand i would be just as confident going to the casino then putting money into a company that just lost 30% in a day. They don't seem to be doing anything majorly wrong, i mean they don't have huge amounts of debt, they have a fairly large fleet of 30 odd drill rigs and they are located in Townsville and Cloncurry. Living in Mackay myself i see the impact of the mining/mining services and personally i don't think this boom is going to just fizz out overnight. While this news might have been the final trigger for investors who have had a pretty rough ride on the SP over the last year. Would have to look more closely at DTQ but for me the company is in the right business at the right place and time.
 

System

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On December 19th, 2013, Drill Torque Limited (DTQ) changed its name and ASX code to Mitchell Services Limited (MSV).
 
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some good figures in the annual report of growth. now just need the cash in bank
Average operating rig count
increased by 15.4 rigs year on year
• Utilisation improvement from 35% in
FY2017 to 57% in FY2018
• Revenue up 80% year on year
• FY2018 EBITDA 279% of FY2017
EBITDA
• MSV anticipates continued growth in
FY2019
 
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quite a nice quarter update

Appendix 4C Quarterly Report and Investor Update
Strong FY19 Q1 performance with following key points
 Revenue $31.0m
 EBITDA $7.0m
 EBIT $4.2m
 Operating cash flow $4.4m
 EBITDA to operating cash conversion rate 63%
 35% reduction in net debt from 30 June 2018
 
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@ jonnycage fingers crossed for you mate.

MSV not feeling the love at the moment and hopefully can hang in there. I do not no anything about them but quite a few shares on issue and as you highlighted previously they appear to be doing well financially.

upload_2018-11-28_6-37-1.png
 
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