not vested
THIS 'PICKS AND SHOVELS' COMPANY IS BREAKING OUT
Today, a bit of kudos for our resource expert Matt Badiali...
In January, Matt returned from a trip to Abilene, Texas to see how low oil prices were affecting the oil-rich Permian Basin. He described seeing a "graveyard of inactive oil-drilling rigs"... and suggested that Vancouver-based auction house Ritchie Bros. Auctioneers (RBA) would stand to benefit from the uptick in used-equipment sales.
Ritchie is a global leader in its industry. The company has grown from less than $100 million in gross auction proceeds in 1980 to around $4.3 billion in 2015. In short, when oil prices rise, so does demand for used equipment. And that means bigger sales and more profits for companies like Ritchie Bros.
As you can see from the following chart, not only was Matt's call spot-on... but his timing was, too. Since publishing the essay on January 15, RBA shares are up more than 45%, recently hitting their highest level in more than seven years...
Source: Daily Wealth