Tim Boreham has included an insightful article on RQL in his...

Tim Boreham has included an insightful article on RQL in his excellent 'Criterion' column for 'The Australian.'

RQL has been a little known company since its initial listing although after very favorable coverage in The AFR and also The Australian over these last weeks this is slowly changing.

Here is the article.

Best Wishes to all.

Resource Equipment (RQL) 61.5c

WHEN it comes to natural disasters, some folk send generous donations or strip down to join the sandbagging with complete strangers. Then there's those whose natural reaction is: "how can I make a buck out of this?"

Resource Equipment, which specialises in mine dewatering and water management, has captured the attention of offshore brokers and fund managers, who normally would not give a $140m stock a second of their precious time. According to CEO Jamie Cullen, the Perth-based outfit has also been inundated with calls from inundated Queensland miners. "Every hole in the ground became full of water and there's obviously an urgent need to get rid of the water," he says.

However, the water needs to subside first and, in many cases, access won't be possible for six to eight weeks. Even if the water can be pumped, a permit is needed to dump the stuff.

Cullen says there's not likely to be a revenue impact until the fourth (June) quarter but "we're certainly talking to a lot more miners than we previously were".

Last year, the company derived about 1.5 per cent of revenue from the east coast; this year it's likely to be more like 20 per cent.

On broker estimates, Resource Equipment is expected to generate $9.5m of earnings this year on revenue of $40m. The company has $27m, of tax losses, a legacy of listing via the shell of failed debt collector Repcol.

The shares have had a decent run already, but sneak in as a long-term buy for those unfazed by the lack of a dividend.