"One of my favorite was to play the market is to find a hot area and then invest in companies that provide products to support that market," says Dave Dyer.

In The Dave Dyer Newsletter he explains, "Bucyrus International (NASDAQ: BUCY) is a domestic heavy equipment manufacturer that is focused exactly in the areas that will benefit from the global commodities boom.

"The company's products are focused on mining for coal, iron ore, copper, oil sands, and other minerals needed to support the global infrastructure expansion. Mining is hot right now, and all mines need mining equipment.

"Rapid industrial expansion in Asia and Eastern Europe requires raw materials. This trend is not likely to stop soon.

"BUCY is a very old company. In 1880, they started as a small foundry in Bucyrus, Ohio. By 1904, they were supplying excavation equipment for one of the largest projects in the world, the Panama Canal.

"By 1969, they were making earth moving equipment that was almost 22 stories tall. If you need to dig a really big hole, talk to BUCY.

"They finally went public in mid 2004 and the stock has been a clear winner. It is up more than 800% since the IPO. That stock performance is supported by excellent fundamentals.

"In the just reported quarter, they beat estimates on their earnings and reaffirmed guidance for the rest of the year.  Revenue was up 172%, compared with the same quarter last year, and EPS was up 91%

"Revenue has more than doubled for each of the previous three quarters and earnings have been increasing between 44% and 115% over the same period. These giant numbers are not accompanied by a high PE; it is only 33.

"There can be a long lead time since these major pieces of equipment are all made to order. The current average is two years from order to delivery. In that type of environment, any increase or decrease in the size of the order backlog is a reliable predictor of future revenue.

"BUCY’s backlog grew 61% during 2007, so the future should be good. Their replacement parts and service business actually generates more revenue (57%) than the new equipment business (43%).

"Since the life expectancy of mining equipment can be 40 years, BUCY’s customers expect to have a long-term relationship with them. This also adds to the predictability of their revenue.

"This is not a market that is easy for new competitors to penetrate. The heavy capital requirements and long lead times are effective barriers to entry. BUCY seems to have only one direct competitor, Joy Global (NASDAQ: JOYG).

"With a market cap of $8.3 billion, JOYG is larger than BUCY, but is growing somewhat slower. There is plenty of business for both companies. I would prefer a monopoly, but if I can’t find one, I’ll take a duopoly."