The adage of buying companies that sell the “picks and shovels” during a boom rather than those doing the digging is apt for ALS (ASX: ALQ), a leading laboratory service provider. But the market sees it differently, irrationally so, at ALS’s current price.
ALS provides testing services for global mining companies in geochemistry, metallurgy, mine-site service and inspection. A gold explorer, for example, might use ALS to test exploration samples. Coal and gas explorers test samples through ALS’s energy division.
In life sciences, ALS laboratories test environmental, food and pharmaceutical, electronics and animal health services. In industrial services, ALS provides laboratory work across industry.