Macmahon Holdings is a mining services contractor. During the 2018 financial year they generated revenue of over $700 million, almost double from FY2017. They have forecast over $950 million for FY2019. EBIT was over $41 million (FY2017) and they project $70-$80 million for FY2019.
Volatility is a frightening word to many investors and many of you will no doubt say that you have seen enough of that lately. We agree, insofar as providing a smooth investment journey to our shareholders is important to us, but we also know how to make a bit of hay when the sun shines.
Within Australian equities, investors may choose between large caps or small caps. In the long term, large caps grow at, or around, GDP and are generally heavily weighted with financial and material stocks (see the graphs below). This does not provide sufficient diversification for most investors.
We visited the management of Macmahon Holdings (ASX:MAH) in Perth this week. It is one of GC1’s largest holdings and in the wake of some downgrades in the sector and chatter about union disruption, labour and equipment tightness we though it prudent to see how they are viewing current conditions.
ne of three listed credit collection agencies, Pioneer is the newest and, until recently, the smallest (it has recently surpassed stalwart Collection House (ASX:CLH) by market cap). It has brought a clean reporting standard and claims of a higher quality debt purchasing benchmark. The proof will turn out over time (or not) as we see the longer-term collection success rates, but so far, so good.