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If you’re looking for evidence the market is a bit directionless and lost on Tuesday, look no further than Mayfield Group (ASX:MYG) being the top gainer one hour into trades based on news from Monday.
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Mayfield Group primarily offer switchboards to a range of clients and they also handle the electronics work of putting together server racks and managing cables in server rooms.
On Monday, the company inked an A$4M deal with Nilsen to buy off the latter’s own switchboard division, the latest strategic acquisition made by Mayfield in a recent period of growth.
Based on a relatively low volume on Tuesday – only $306K worth of shares had traded hands at the time of writing – Mayfield Group was up 8.3% on Monday, the biggest gainer on the ASX around 11am AEST.
In its own words, the company is a services provider focusing on electrical and telecommunication infrastructure. Not exactly a sector known for its sex appeal though it’s possible one investor out there might believe they’re about to start working on data centres.
To be fair, the company did dress up the $4M acquisition of Nilsen’s switchboard division with a short but slick corporate preso, and the term data centre does pop up, on a pictorial element drawn like a little city to give an idea of how many potential customers there are.
Mayfield is perhaps a dark horse on its own merits – the stock’s up +150% over the last twelve months though it’s been hit to the tune of -14% since the year kicked off. The company has a market cap of $300M but at the time of writing appears to lack the liquidity for trading proper.
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