Topic: How To Invest

Power Growth Investor Hotline – Friday, May 21, 2021

Article Excerpt

MAJOR DRILLING GROUP INTERNATIONAL INC., $10.66, is a buy for aggressive investors. The company (symbol MDI on Toronto) is a large contract driller that mainly serves the mining industry. Demand for Major Drilling’s specialized drilling services, especially from senior gold producers, is beginning to recover. That has pushed your shares up 364.6% since they plunged to a low of $2.26 in March of 2020. Major Drilling is now acquiring McKay Drilling Pty Limited, a leading specialty drilling contractor based in Perth, Australia. The purchase price will be approximately $75 million Canadian. Founded in 1990, McKay is considered a leader in reverse circulation drilling; it operates a state-of-the-art fleet of 15 high-capacity reverse circulation rigs and five deep-hole rigs with advanced hands-free remote operation and monitoring technology. Diamond drilling is more efficient for precise sampling and analysis, whereas reverse circulation drilling is adept at extracting bulk samples. McKay’s fleet is at the very high end of specialized drilling equipment. The company is widely regarded as…