I'm urging you to do something here... I'm urging you to not be so overwhelmed by the absolute horror of this market, and it is horrible...

So, how do you make money when the Fed cuts rates?... Well, we obviously think the banks will go up... we know that... and maybe some retailers, but those are a little dicey...

Now here's an idea... some of the incredibly beat up industrials... the dirty smokestack stocks... they can come back... and the one I like right here...

I like Terex Corp. (TEX).

TEX is the #3 construction and mining equipment maker in the world.  But it's a very small market cap...  TEX is benefiting from the global construction boom, but it's being taken down, thanks to the weakness in America... at its 52-week low January 8th...

You know, I have to tell you... I think that hitting the 52-week low... I think the pummeling it's gotten... is wrong.  And that's because two-thirds of its business comes from ROW... the rest of the world...

Only one-third is North America, so it's not nearly as hostage to Bernanke and company as we think...

Why pick TEX over Caterpillar (CAT*) - a stock that I own for my charitable trust?  Well, right now, just at this moment, TEX is safer.  And, in this market, we have to put safety first.

... stocks with large buybacks and insider buying... twice blessed stocks...  These two things are the essence of safety right here, because a buyback gives you a cushion, if it goes lower... and TEX has a mighty buyback... $700 million, with over $500 million left in the authorization.  Remember, this is only a $5.4 billion company, so you're talking about 12% of a $5.4 billion company...  And the insiders are buying too. 

We need everything going for us.  This market is so horrible that, believe me, we need everything going for us...  we need a buyback, we need a low valuation, and we need guys like Thomas Reardon, the Chief Operating Officer, who bought 20,000 shares.  That's an investment over a million dollars...  And we need guys like David Sachs, a directory, who picked up 15,000 shares...  So, big insider buying... and that's big...     

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This one is too cheap.  It's the cheapest in its industry, and this is another element of safety.

Three months ago, TEX - are you ready? - was at $86.88... three months ago.  Now it's trading at almost $53...  It's down 40%.  That is not a down move that signals a slowing economy, or even a recession... No!  Some stocks are priced for perfection... TEX is priced for a depression...

TEX got its head completely and utterly cut off... partially because it missed its earnings last time by 2 cents, when it reported on October 21st, even though they reaffirmed their guidance, reporting $1.45 a share, when the Street was looking for $1.47...  It doesn't justify a 30-plus point rate drop...  not with another rate cut increasingly likely...

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There's one more reason we like TEX...

The area work platforms business that accounts for 26% of their estimated 2007 sales...

The Street's been expecting a big decline in this kind of platform business, but today, United Rentals - the biggest area work platform rental company in America - said it would increase its capital expenditures for the business this year.  That could mean some money for TEX that the Street's not expecting...

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The Bottom Line!:   When the Fed cuts rates, the industrials will benefit, and one that I think could really fly is Terex Corp. (TEX).  It's among the safest in the group right now, because it's down a lot, it's got a buyback, and the insiders are snapping it up.  I'm with the insiders.

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