Filed under: Commodities, Stocks to Buy

Readers of this space know that the investment bias is toward large-cap companies with demonstrated business models which have a competitive advantage in established markets, preferably with a favorable global trend as a support. And with the above in mind, Joy Global is worth a review.

Joy Global (NASDAQ: JOYG) makes heavy equipment for the mining industry through two subsidiaries, Joy Mining Machinery and P & H Mining Equipment.

JOYG is well-positioned to benefit from two global trends that show little sign of ending: infrastructure development (which requires copper, among other commodities) and energy usage (which requires increased use of coal for electric power generation.)

Analysts like JOYG’s sector-leading high-teens margins, superior management team, and revenue mix that tilts toward its lucrative aftermarket parts and service business. In addition, it appears that 2007’s supply chain issues have been addressed and resolved.

Continue reading Joy Global: Maintaining the global commodities boom

Permalink | Email this | Comments

Share This

This entry was posted on Tuesday, March 11th, 2008 at 10:38 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.