Jim:
Now that hedge funds
gone wild have tamed
their investors by
stopping
redemptions... and
not letting them
take their money
out... the forced
selling that has
ruined so many
stocks finally seems
off the table.
That's when people
say, oh, the selling
has finally
exhausted itself...
Well, the hedge
funds won't let the
money out... they're
keeping the money
in...
That, and the
apparent bottom in
China, is why
Bucyrus
(BUCY),
the other major
mining equipment
company that we've
talked about, next
to
Joy Global (JOYG),
I think, has finally
started coming
back... although it
can't be directly
linked with an Obama
stimulus plan...
The recent Chinese
stimulus package is
a huge plus, and it
could be causing
people to cycle back
into the stock and
others like it... In
fact, Obama
indirectly dissed
coal mining today,
as he warned us that
his administration
actually... I don't
know how to actually
explain this... it
believes in global
warming...
Obama says the time
for denial is over,
but what does that
mean for your
investments?...
See all
of
tonight's
stocks
mentioned
on
Yahoo!
Finance,
here...
Tuesday,
December 9, 2008
(Cont'd from
above)...
Jim (cont'd):
The last time we
heard from the CEO
of Bucyrus
(BUCY),
on June 5... the
stock was at $73...
and now it's at
$17... that's not a
mistake... It
bottomed at
$13.66...
This one is a cliff
jumper, even though
it reported a decent
quarter. I mean,
look, it missed
earnings by two
cents a share... big
deal. The Street
wanted to see
$.87... it gave us
$.85... a record
backlog, $2.5
billion... Keep this
in mind... it's only
a $1.35 billion
company... and it
said that it expects
business to stay
strong in the fourth
quarter of 2009...
Everyone yawned,
nobody cared, hedge
funds selling...
unbearably and
unbelievably... as
every hedge fund
manager switch from
cyclicals to soft
goods... soaps and
cereals...
Obviously, today,
they were switching
back, and they sold
all that cool
stuff...
Now, things may have
changed... as people
are selling...
trying to figure out
which one of these
companies is
actually doing
better... They want
to rotate to
everything mineral,
everything iron,
everything
machinery...
Now, BUCY gets about
70% of its sales
from coal mining
equipment and, even
though the price of
coal has fallen, the
equipment business
should rebound if
China is
rebounding...
▼ ▼
▼ ▼
▼
BUCY's CEO has said
that orders can't be
canceled or
delayed... That has
never happened in
his 32 years of
business... I don't
know, it seems
pretty bullish to
me...
But then we saw
Cramer-fave,
Freeport-McMoRan (FCX*)
cancel $570 million
in equipment orders
the other day...
Alright, this is
been a really tough
market for BUCY...
Hey, is the worst
over?... I mean,
maybe we've got tax
loss selling and
stuff, but maybe we
have a really cheap
stock here... after
having to think we
learned it was
expensive...
Why don't we talk to
Tim Sullivan, the
CEO of
Bucyrus
(BUCY)...
Mr. Sullivan,
welcome back to Mad
Money...
▼ ▼
▼ ▼
▼
Jim's comments
AFTER the interview:
Do you see why the
stock bottomed?...
They are still
building coal
plants, the stock
has been just killed
by hedge funds gone
wild... Do I predict
a swift upturn?... I
predicted this!...
that company cannot
remain independent,
with that level of
backlog, and that
low a stock price...
I am a buyer... I am
a buyer of Bucyrus
(BUCY)!
I can't believe it's
this low...
