Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, June 12, 2015

Article Excerpt

MAJOR DRILLING GROUP INTERNATIONAL INC., $6.37, symbol MDI on Toronto, is a large contract-drilling firm that mainly serves the mining industry. In the three months ended April 30, 2015, Major’s revenue fell 1.7%, to $81.2 million from $82.6 million a year earlier. The company narrowed its loss to $13.1 million, or $0.16 a share, from $24.9 million, or $0.31. However, the year-earlier period included $19.5 million of pre-tax restructuring charges. Major’s results could remain weak into next year, but its longer-term outlook is positive. As well, despite the significant industry downturn, the company is now reporting positive cash flow: its cash flow was $5.2 million, or $0.07 a share, in the latest quarter, compared to negative $3.3 million, or $0.04, a year earlier. The company’s balance sheet is also strong, with cash of $44.9 million, or $0.56 a share. Its $8.6 million of debt is just 2% of its $520.1-million market cap. To conserve cash until commodity prices start to rebound…