Joy Global Maintained At Sell
Finally, Revich maintained a Sell rating on shares of Joy Global with a price target lowered to $8 from a previous $14 due to a 5 percent reduction in after-market sales forecasts and lower Underground new equipment sales versus prior expectations.
Revich added that even though Joy Global's stock is already "down significantly" over the past two years, it is still important to keep in mind that: 1) coal is "structurally" losing share to natural gas and alternative energy sources, 2) the base metals deflation cycle remains in the "early stages," and 3) the company's tangible book value of $900 million is higher than the stock's $1.4 billion market cap.
truly amazing, eh?...I saw lots of already beaten down stocks getting creamed even more today...not on any news....Oh, TOO / TDW / NM / DSX...& shipping preferreds...so very many getting creamed...and I have to believe it's mostly about "tax selling", especially in preferreds where the volumes are quite low generally - just takes more sellers to really push down the prices....Nothing anyone can do except wait for DECEMBER to end...So, just have to sit and wait....suck it up (had to get a whole new computer system today...so, wasn't able to do any buying of some things I wanted...Like those blasted NM-H preferreds...totally crazy...whatever...Just have to wait it out.
miners are drastically reducing output this means even the mro rev for joy is getting killed not to mention the new equipment sales. miner cap budgets are reduced to nothing
Dec 07 under $12
still watching and waiting to get in
potential there for 700% ( or more ) profit in a few years
Sentiment: Strong Buy
you have not seen anything yet. my feeling is that by summer, a lot companies in the commodity sector will need to file for creditor protection. my opinion
agree, but this is a new paradigm with the commodity sector. new bottoms will be created with many companies never seen before and some will not survive as we know them today. my opinion
If natural gas was more expensive, Joy might find a bottom as coal catches a bid. But does not look to be this year, and still high risk at $10, #$%$ may be coming.
could be, hard to tell a bottom in these types of stocks. There is some relationship in prices with fcx directionaly but not absolutely.
I don't like to buy options because you have to br right twice: the direction of the movement, and the timing. I much rather sell them, specially Put options. Most of the time (85%) these options expire out of the money, so you keep the premium. That's how I came up with 22%. One dollar of premium for 12 dollars, In 4.5 months. So you either keep the dollar ( for the April 2016 puts at 12 strike) or if Joy drops below 12 before then, you have to buy it at $12. Not bad for me that like the company even at 15 (1.5 billion market capitalization).
The real dive, again, will come after reading all the report on December 16th.
BTW, The April 12 puts are giving you more than a dollar if you sell them now...
an excerpt from a "STREET" article...sorta cute...written by a floor trader
"...The majority of those piranha-feeding trades were market orders that were probably the tax-loss-selling type. They were gifts tossed to the pit as those traders deciding to bank losses for that taxable year had to close those trades before year's end. As I was not on the floor during most if not all of December, I employed floor brokers to do the slam dunk trades for me. I was more than willing to enhance the brokers' December commissions totals as this was a win-win thing (well, except for the other side closing on that loss).
We are here once again, in a chaotic and somewhat illiquid December. We know that far too many of those "other guys" have some tax-loss selling potential to do at some point this month. As in "Be! Be the ball, Danny," think: "Be! Be a piranha!" Do the homework, set your sights on what you either want to own or sell, and have your own holiday shopping list ready to use if and when the opportunity arises to do so over the next four weeks of 2015 trading. ..."