Secondary Recommendation

Mincon Group - Maker of spare parts for rock drilling rigs enjoys strong debut

January 2014

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Mining companies have had a tough time this year as slowing growth in BRIC countries has reduced commodity prices and clipped their margins and in response they have reduced capital expenditure to conserve cash. This might seem an uninviting backdrop for the recently floated Mincon Group, which makes spare parts for rock-drilling rigs on behalf of the mining / quarrying and oil & gas drilling industries. However, the company is predominantly focused on consumable products, which have a shorter life cycle than capital goods and its track record is impressive with revenues rising 88% to Eu 63.1m and pretax profit 113% to Eu 13.2m in the two years to 31 December 2012. Not surprisingly, the shares, which were introduced to AIM by broker ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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