Another jolly day in Aussie Mining Services with stocks down between 2% (UGL, Worley Parsons) and 11% (Boart Longyear, Emeco). Boart now down nearly 30% in 3 days. We stick with our concerned stance on European Testing names who have 6, 12 and 17% respectively of revenues from Mining-related businesses and who all trade on P/E’s of around 20-22x. Seems like all things Mining, notably exploration, in Australia and increasingly, we suspect, Canada, have stopped dead in their tracks. To this end note Testing company ALS Ltd in Australia was cut to sell by Deutsche Bank and fell -4.5%. ALS is 60% Minerals. Sell more Euro equivalents, especially SGS. For most of these companies this is not only the fastest -growing but also one of the higher margin businesses hence we keep on going on about it. Material risk to the “E”. Miners in disguise, etc, etc. Report dates SGS 17th July, Intertek 29th July. SELL BOTH.
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