My gut feel is that this is just one of a number of issues that IDL management would be well aware of and would manage as part of their routine risk management (the strengthening of the management team that was announced struck me as a big plus).
A couple of relevant factors are: (a) China is a large and growing chunk of IDLs revenue so there is some risk - but
(b) The Chinese market is big and growing. (c) When safety is the issue it's not all about price. For example reliabilty would be a huge factor because of the potential cost of disruption to mining. Who wants to lose production because their cheap gas drainage gear isn't performing or is broken down and the mine is unsafe?
Totally my opinion - accuracy unknown!
It would be interesting to know what % of the market IDL has in China. I do know they are a small outfit relative to the big US firms - so presumably there's potential to grow market share.
IDL Price at posting:
$1.04 Sentiment: LT Buy Disclosure: Held
