by Travis Johnson, Stock Gumshoe | March 18, 2011 4:39 pm
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Source URL: https://www.stockgumshoe.com/2011/03/march-idea-of-the-month-aussie-picks-and-shovels/
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Sounds interesting. I like investing in “pick and shovel stocks” and this story looks as good as any though I wish it had more global exposure than just Australia and China. Lot of eggs in just 2 baskets. What I am pondering is whether this is a long term play or is the current volitility enought to do some shorter term trading on. Since late November it seems to be trading in a range from A1.25 to A1.50 with no clearcut trend (yet). Right now it is in the middle of that range. There may be enough here to do some trading but until I see an uptrend and the stock can breakout above 1.50, it may not be suitable for long term investment unless you have a high risk tolerance.
So the quesiton is what will be the catalysts that allow the company to breakout and when will they happen? Improved earnings reports? Some new contracts? An acquision outside of their current geographical service area?
I’ll put this on my watch list and see what happens. Any comments on my thoughts?