- Hargreaves Services - HSP announced that its Maltby mine had been hit by unusual geological conditions. Oil and water was seeping into a new section of the mine it was trying to open up leading to delays which will impact 2013 profits by £12m to £16m.
2012 profits are unaffected and estimated to be in the region of £48m by analysts (compared to £37m last year). Management believes this to be a one off and that the problems won't impact medium to long term prospects. Whether you believe this or not will influence whether to sell or stick with HSP.
HSP management have a good track record and I don't believe there is any reason to doubt them at this time. Obviously another set back would change this. I think the 30% drop in the price was overdone on this news and so I added to my modest holding at 729p (current price is 773p). Results to 31/5/2012 are due in September and hopefully we'll get an update on events with some positive upside.
- Maintel Holdings - MAI was down 25% purely on the overall sell off. Someone wanted/needed to sell and the price of this small illiquid share dropped as a result. As there was no accompanying news I added to my holding at 332p. When the markets get back to normal we should see a bounce.
Randgold got down to 4480p and has bounced nicely but I already have a gold miner in PAF and I am not sure that gold has put in a bottom yet, although Fridays increase was on good volume. As I already own PAF I have taken RRS off my watch list.
The sell off on Wall Street on Friday suggests that when the FTSE opens on Wednesday we'll see some interesting action. Of course by then the Dow may have bottomed and be back on the way up. Who knows? But the FTSE is sat on the last uptrend channel and its a long way down!