it may be up in cyberspace for a long, long time and that any one of your blogs could be read out of context at a future time. So I, like
Jack Finney in his time traveler short stories "About Time" , must
leave notes for future readers that will stand the test of time, to be read and relevant in the future. Last week I put up mostly momentum stocks. This week we are back to fundamentals and good earnings growth.
Caterpillar Inc. (Symbol CAT, $90.35) is a rock solid company whose machinery sales were up 48% over the 3 months ending in October. Annual earnings for 2010 of $4.02 and projected 2011 earnings of $5.70 per share. Cat is also buying Bucyrus International to fuel their revenue growth. They also are doing a one billion Yuan bond issued for two years that is well received. 12 month Total return of 59.5% for CAT. This one will stand the test of time.
Carpenter Technology Corp. (Symbol CRS, $ 38.68) the manufacturer and fabricator of specialty metal alloys has taken a sudden and rapid earnings turn to the positive and I think it is because of demand for Titanium products. Earnings for 2010 are going to $1.40 and 2011 are projected at $2.79 per share. Carpenter Technology announced "Expansion of Titanium Facility to Support Growing Aerospace Fastener Wire Demand". Titanium is an amazingly strong and light metal. A piece of it has held my hip and femur bone together for the last ten years after a car accident, so I can personally vouch for it.
The third industrial stock is Joy Global Inc. (Symbol JOYG, $79.14). This company has a return on equity of 45.90%. 5 year earnings growth of 26.92%. The company has been building cash reserves for the last 5 quarters. This producer of machinery for mining Copper, Coal, and Iron ore should keep going strong with the world growth in China, India and Brazil.
Make sure to sing a happy tune and enjoy the capital gains tax staying at 15%! Freewilly