The Motley Fool

Is this a sign a new resources boom is coming?

Considering how much construction and engineering companies have seen their share prices soar over the past few months, anyone looking closely might wonder if a new mining boom is underway.

Commodities prices, including iron ore and oil have risen, but so have expectations that prices for many more commodities like coal, gold and copper will stay higher for longer.

Here is a selection of mining services-related companies and their share prices moves in the past three months.

Company Share Price Market Cap ($m) Price change
Monadelphous Group Limited (ASX: MND) $14.76 $1,380.0 20.0%
ALS Ltd (ASX: ALQ) $7.69 $3,877.5 24.0%
Macmahon Holdings Limited (ASX: MAH) $0.18 $212.6 7.0%
RCR Tomlinson Limited (ASX: RCR) $3.63 $507.4 20.0%
Ausdrill Limited (ASX: ASL) $1.83 $572.1 32.0%
Watpac Limited (ASX: WTP) $0.62 $115.4 31.0%
NRW Holdings Limited (ASX: NWH) $0.63 $201.1 10.0%
Southern Cross Electrical Engineer Ltd (ASX: SXE) $0.57 $90.9 16.0%

Source: S&P Glboal Markets Intelligence, Google Finance.

Ok, I’ve cherry-picked that list, with several engineering and construction companies seeing their share prices sink over the past three months, including AJ Lucas Group Limited (ASX: AJL) and Cardno Limited (ASX: CDD).

However, when large services companies like Monadelphous and ALS Ltd are seeing price gains of 20% and above, it might indicate that the sector could be coming back to life following a crash in capital expenditure over the past few years.

NEW. The Motley Fool AU Releases Five Cheap and Good Stocks to Buy for 2020 and beyond!….

Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading over 40% off it's high, all while offering a fully franked dividend yield over 3%...

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!

Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.