Topic: Growth Stocks

MAJOR DRILLING $8.42 – Toronto symbol MDI

MAJOR DRILLING $8.42 (Toronto symbol MDI; TSINetwork Rating: Speculative) (1-866-264-3986; www.majordrilling.com; Shares outstanding: 79.2 million; Market cap: $666.7 million; Dividend yield: 2.4%) has agreed to buy privately held Taurus Drilling Services for $27.7 million, plus a further $11.5 million tied to performance.

Taurus, which operates in Canada, the U.S. and Mexico, performs underground longhole drilling for mining firms. Longhole drilling is used in operating mines to drill holes for various purposes, including blasting, drainage and providing electrical service and ventilation.

The acquisition looks like a great fit for Major, because it lets the company expand into mine-production drilling. That’s important, because it reduces Major’s focus on exploration drillers, which depend on volatile commodity markets for financing.

Major Drilling is still a buy.

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