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Why the Ausdrill Limited (ASX:ASL) share price is still on the slide

Diversified mining company Ausdrill Limited’s (ASX: ASL) share price has seen better days – down 3.1% to $1.46 in early morning trade after a depressing week last week when its share price value plunged 8.2%.

Ausdrill announced it completed the acquisition of leading underground hard-rock mining contractor, Barminco, in late October – transforming it into the second-largest mining services company in Australia.

But investors were unimpressed, and even Ausdrill’s reiteration of its FY19 earnings guidance of between 20% and 30% underlying profit growth failed to boost its flailing share price.

Ausdrill’s mining service sector siblings are travelling along steadily, with Mineral Resources Limited (ASX: MIN) shares kicking off the week’s trading up 2% to $15.77 and Monadelphous Group Limited (ASX: MND) shares up 1.1% to $14.73.

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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. 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 Scott Phillips.

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