Just returned from India, and what I witnessed is amazing. 60% of rural India is without Electricity. To catchup, both Government of India and also the Private Sector is building Coal Powered, New Power Generation Industry.Every month you see, New Thermal Plant being build. They sure Pollute, but don't tell that to the Indians, they are a Very Energy Starved country. They could care less about pollution. Coal is a Cheaper way to Produce Electricity, to meet their ever Increasing Demand for Electricity. That is Good News for JOY GLOBAL ! JOY GLOBAL is heavily into Coal Mine Drilling Equipment Manufacturing and After Market Repaire and Servicing Company. Now I am Very Hopeful about future Prospects of JOY GLOBAL.
I agree. They could easily increase the dividend by $2. That would still leave more than $4 per share in the hands of the Board. They are paying the stockholders a dividend of about 1/10th of the earnings. This is low for a dividend paying stock - almost a joke!!
I believe oil is going higher. The demand keeps going up and production doesn't increase enough. Thus, I have a big position in oil. What does this have to do with JOY? Coal is the alternative to oil. The US, for political reasons, rejects this position but not the rest of the world. I think as oil goes higher, so will coal. This will be very beneficial to JOY.
Having lived through a few mining boom and busts, these are not one quarter events. The first card mining companies play in a downturn is to stop virtually all new investment in capital equipment. It take S and P's view that this is heading to 40 since revenue will collapse below $3.5B and cutbacks at essentially idle plants will not be able to keep pace. Wyoming coal will continue to displace eastern coal which is largely mined underground with the sort of equipment Joy sells. Also they overpaid for the Chinese asset at the height of the boom and will need to write off goodwill here. Tangible assets are quite slim at joy.
Joy is one of the most undervalued stock. Expectation bar has been set so low, that it will be very easy to meet or exceed the target. Come next earning time, JOY will will be trading aroung $68 !!
JOY is scheduled to present at the BAIRD Industrial Conference, on November 5, 2013. JOY will give a Global market Summary pertaining to Improved demand for it's mining equipment, due to the turn around in Global demand for Coal and other Commodities, as China and India's Economy improves.
OTM and ITM November calls at a nice premium not caring if they get called away. Smells like CAT's false breakout into earnings for the same purpose. Nothing has changed here to justify ~5% move up.
JOY is a Cyclical Stock. You always buy them in a down cycle, and sell them in their Up Cycle ! That is how you make money. You don't make money following the heard. Most professional money managers know this Fact. Only novice, retail buyers don't understand this, and do the opposite and lose money, and blame the market.
I agree. I already have a position in Cat, but after reading the article from Barrons dated September 5,"Laggards, but not for long", I am buying back into JOY come Monday morning. They are calling for a rebound for industrials but especially for companies such as Caterpillar, Textron, General Electric and Joy Global. By the way, thanks for the post and good luck.
Will JOY be able to climb abvove 55 so one can hold onto it. JOY goes up in the morning, and takes a nap in the evening. Volume is low. Do you have any reading on this stock. Thanks
Well it's obvious there is something going on.The pressure from the outside is a attempt for control. Looking at past quarters it surprised last three quarters. I think it needs to get the monkey off first don't see no reason why this can't happen. We''l see how strong it is very soon I think. Once that's done should be middle of things allot going on. Big short following they need to be extracted.