Today I doubled my investment in Joy Global (NASDAQ: JOYG), which manufactures and services mining equipment for the extraction of coal, copper, iron ore, oil sands, and other minerals. Its stock price was recently depressed because of one stock analyst Terry Darling from Goldman Sachs, who believes JOYG's "operating performance continues to depress" and missed HIS earnings estimate. However, JOYG's earnings beat the industry consensus estimates by $0.15 with 3rd quater net income up 55 percent! This is a great example of how "professionals" can be wrong at picking stocks as well. The last time I checked, we still need to mine for coal, iron, copper, and even diamonds! And with added demand from emerging markets China and India, as evidenced with JOYG's recent acquisition of China's Wuxi Shengda for $22 million, I really don't see where the slow down of mining is going to occur.
This company believes in itself and cares about its investors by agreeing to repurchase $1 billion of its shares before the end of the year. What is repurchasing? As quoted from the Forbes article, "Repurchasing stock takes a company's shares out of circulation, boosting the value of existing shares and fattening profits measured per-share. Companies usually repurchase shares when they feel their stock is undervalued." Also this stock pays a dividend of $0.175 per share on a quarterly basis.
Tell me again Terry Darling, what exactly is wrong with this stock?
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