Thursday February 21, 2013
by Russ Kaplan, editor Heartland AdvisorThe market is trading at high levels, compared to where it was in the past four years. However, there are still good companies out there that are not even close to their all time highs and it is here where we can find value, such as my newest buy,
Joy Global (
JOY).
Joy Global is a U.S. based company with operations in 20 countries that span six continents. It is a mining company, which was founded in 1848 and thus has a lot of experience with rapidly changing technology,
It currently has a price/earnings ratio well below the market value, and well below its own average. It is currently in the low $60s, but in 2011 it traded at over $100 per share.
Some will probably express concern regarding Joy's presence in the coal industry. The company’s goal is to go beyond the tenets of basic legislation and to voluntarily improve the quality of life for their employees as well as the environment.
Also another answer to this is to remember to think globally about the demand for coal. Although coal production is being discouraged in the US, the industry is going full guns in many other countries, especially in the developing ones. Living standards are rising in these countries and because of this upgrade there is an insatiable demand for coal.
Joy Global is in great financial shape partly due to the large number of shares owned by its management. The stock only pays a 1% dividend so it probably isn't appropriate for income-oriented accounts.
Learn more about this financial newsletter at Russ Kaplan's Heartland Advisor.Related articles
