Q: I've held MDI for some time (years) - thinking when gold and metals market move higher {which they have done) , MDI would be a leveraged 'picks and shovels' way to play the sector. That has not occurred, and recent quarterly results seem underwhelming to me. Your thoughts on both the results and my strategy.
Note: A couple of years ago I added AEM/NTR to bolster my materials weightings so do not need MDI in my portfolio to cover material sector.
Thanks in advance for your thoughts and great service.
Glenn
Note: A couple of years ago I added AEM/NTR to bolster my materials weightings so do not need MDI in my portfolio to cover material sector.
Thanks in advance for your thoughts and great service.
Glenn
5i Research Answer:
MDI, at least, is up 23% YTD, helped along by the mining sector's surge. It remains debt free with about $11M net cash. EPS is lower than it was four years ago, but is expected to rise 20% in 2026. But the last quarter missed estimates and it has a weak record here, which has hurt the stock. Insiders have also been selling, which has hurt sentiment. The stock has more than doubled in the past 10 years and is up 33% in the past five. But with its small size and at 18X earnings, with no dividend (discontinued in 2016) we would not miss it if it were sold.