Saavy buy for Major Drilling

Article Excerpt

MAJOR DRILLING, $8.70, is a buy. This large contract driller (Toronto symbol MDI; TSINetwork: Speculative) (majordrilling.com; Shares o/s: 81.8 million; Market cap: $712.0 million; No divids.) is now acquiring Explomin Perforaciones, a specialty drilling contractor based in Peru. The purchase price is $63 million U.S., with an added $22 million U.S. based on future performance. Through the purchase, Major Drilling gets a fleet of 92 drills, bringing the total rig count to 701 and solidifying its position as the world’s largest mineral driller. Explomin has a strong reputation in South America, with over 90% of its revenue from senior miners. Major Drilling is a buy for aggressive investors. investors…