Joy Global, Inc. (NYSE:JOY)

CAPS Rating: 4 out of 5

Manufacturer and servicer of high productivity mining equipment for the extraction of coal and other minerals and ores. The Company's equipment is used in major mining regions throughout the world to mine coal, copper, iron ore, oil sands & other minerals

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Player Avatar Googlespooch (34.31) Submitted: 6/14/2013 3:29:16 PM : Outperform Start Price: $51.87 JOY Score: -11.02

Admittedly, coal is having a rough time of it as an industry. Despite this, I think that Joy Global (JOY) can still manage to make some money and improve. As China begins to improve and stabilize, it will continue to be its coal-happy self and consume increasing amounts of coal. Even better, Joy has a better grip on China than Caterpillar (CAT) and is working to improve that position through acquisitions over the last couple of years. In addition to China, India also has a penchant for coal in order to fuel its operations. Besides all of that, natural gas prices are beginning to increase. With natural gas prices increasing, utility and energy-producing companies will be less inclined to make full switches to natural gas and will likely continue to utilize coal in their operations. Hopefully, all of this will help to drive sales of Joy's heavy mining equipment. Although the company may suffer some in upcoming quarters, I believe that, long-term, the company may have something going for them.

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