Boart Longyear share slump proves a buying opportunity

Directors of mining services companies again took a big hand on the spending front, accounting for about 21 per cent of turnover.

Directors of mining services companies again took a big hand on the spending front, accounting for about 21 per cent of turnover.

The chairman and two other directors of Boart Longyear bought shares in the global drilling concern at around 66¢ to 71¢.

The company recently said the downturn in capital and exploration spending had reduced the demand for drilling services.

It said that current year earnings before interest, tax, depreciation and amortisation would be at the lower end of a range of analysts' forecasts, which in April ranged from $199 million to $271 million.

The stock has halved since mid-April.

Chairwoman Barbara Jeremiah told the annual meeting last month that more than $70 million in costs had been extracted from the business since the middle of 2012.

Elsewhere, Wang Xiao Bin added to recent director-buying of WorleyParsons scrip, while two directors of Resource Equipment were buyers of heavily discounted scrip.

Elsewhere, a director of buoyancy products outfit Matrix Composites & Engineering, added to his stake.

This has been a very costly conveyance for punters since early 2011 when the shares hit $10 or thereabouts amid much hoopla.

Matrix lost nearly $26 million last year - a far cry from what various experts were tipping. For example, book-flogger and Buffett disciple Roger Montgomery was at one stage tipping earnings of 51¢ a share.

In the latest December half, the group made just $586,760 pre-tax on $82 million of sales.

Among sellers, two folk from Xero dominated proceedings. The accounting software concern is valued by the market at $1.3 billion and has yet to make a zack. The group released a bullish investor briefing this week.

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