Trade of the Month: Why Bell Equipment beats Master Drilling
Both companies have healthy order books, but if Bell can have another solid year of demand, its investment in inventory will pay off
28 April 2023 - 08:00
Let’s get one thing out the way early on in this discussion: neither Bell Equipment nor Master Drilling has been a happy long-term hold.
Over 10 years, Master Drilling’s share price returned a compound annual growth rate (CAGR) of 5.7% and Bell has lost 24% overall, so even having a CAGR was a stretch too far for the latter. This excludes dividends in both cases, though buying cyclical companies for regular dividends is a misguided pursuit. ..
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