actually. JOY has survived the big fall over the last month and has chosen to stick around the 51-54 range.......CLF, WLT and others have lost 50% of their stock price........CAT and DE had tost lots too........expect that big fall to come sooner than later.
CAT talked about how the mining segment was down 50%....and expected it to stay bad for an extended period....bad news for JOY...hopefully a lot of this is built in...but I expect a number of analyst to come out negative on JOY as a result....
The point is, these idiotic, speculative posts offer nothing to the conversation. And the OP is a few weeks late to the party.
Joy Global Inc. (JOY), the world’s second-largest maker of mining equipment, refuted allegations made about its International Mining Machinery Holdings Ltd. unit and said it has a “high level of comfort” in the reported results of the business it bought in China last year.
“Joy Global has conducted numerous internal and external financial and operational audits and business reviews of IMM before, during and subsequent to the company’s acquisition in 2012,” Jim Sullivan, Milwaukee-based Joy Global’s chief financial officer, said yesterday in a telephone interview. “These audits and business reviews have not uncovered any fraudulent activity and have given management a high level of comfort that the internal controls within the business are sound and reported results are accurate.”
A report dated April 11 on the website of Anonymous Analytics said there was fraud at IMM before Joy Global completed its purchase of the company, and five of IMM’s six largest disclosed customers appeared to have been “shell entities or related parties controlled” by the unit’s insiders. There may be a risk of Joy taking a writedown on IMM, according to the unsigned report.
Sullivan said yesterday that Joy Global conducted its regular goodwill review at the end of fiscal 2012 and will go through the process again for the year through October. At the moment, the company sees no reason to believe there will be a goodwill charge, he said.
The distributors or sales agents listed in the report are “active and independent” customers of IMM, Sullivan said.
Joy fell 0.7 percent to close at $54.47 yesterday in New York. The shares tumbled 4.2 percent the previous day.
Sutherlin said in January the company is “not concerned with writedowns at this point” and tests and controls including a year-end audit confirm the accuracy of information from IMM.
Questions about IMM have been raised since Caterpillar Inc. (CAT), the world’s largest mining-equipment maker, said it uncovered false accounting at a Chinese unit. Caterpillar announced Jan. 18 it would take a $580 million writedown after discovering accounting “misconduct” at the Zhengzhou Siwei Mechanical & Electrical Manufacturing Co. unit of Chinese subsidiary ERA Mining Machinery Ltd. Former ERA directors Emory Williams and Li Rubo were founders of IMM.
Anonymous Analytics said in its report that while it doesn’t hold direct or indirect interests or positions in Joy Global, it can be assumed that contributors to the report and its clients have short positions in the stock or debt of the company.
who cares. buy the company for the company and if the buyout comes, go shopping and have a beautiful rest of week!
The Hang Seng is up 500 pts or 2.3% today. idk why yet but expect short covering due to china stimulus potiental. shorts are smart and dont want to lose the gain just for holding over weekend.
Come on China, hook it up with some General Tso Stimulus!!!!!!!!!!!!!!!!!!
JOY will have to come clean on their IMM purchase fiasco before anyone would touch them with a ten foot pole.
apologies, harlanharp, i wasn't criticizing you. i was just trying to say that, those people in that race are much more important than our money.
even though i stress out about paying the bills, etc. all the time.
again, i wasn't criticizing you, i apologize if i came across that way.
stop, seriously. if you're buying this stock hoping for a buyout, you're in it for the wrong reasons.
i'm also optimistic, just like you. but please don't mention tragedies like the boston marathon/race and benghazi. there are more important things in life than the price of joy global's stock. it could go to zero tomorrow and i could care less, compared to those events.
it's not only unpleasant, it's wrong.
How about a straight answer from Joy Global on the acquisition price tag of $1.4 Billion for IMM?
Caterpillar closed the purchase of ERA Mining Machinery Ltd and its subsidiary Siwei, China's fourth-largest maker of hydraulic roof supports, last June, paying HK$5.06 billion, or $653.4 million. ERA had been publicly traded in Hong Kong, doing business through Siwei, which is known for making equipment to support roofs in mines.
A member of the Caterpillar board during the course of the Siwei deal told Reuters the board was distracted at the time by a larger transaction and paid relatively little attention to the Siwei acquisition.
"It came as a complete surprise to us," the former board member said of the fraud, speaking on condition of anonymity because of the sensitivity of the situation. "It was presented to us as a pretty straightforward transaction. It's a shame. It should have been investigated further."