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Cline Mining Corporation T.CMK



TSX:CMK - Post by User

Comment by stockhousepunditon Oct 23, 2011 12:12pm
367 Views
Post# 19173900

RE: RE: Everbody take a deep breath

RE: RE: Everbody take a deep breath
Caerus88,

JOY is a heavy mining equipment manufacturer with a one year backlog of orders.  JOY is a much better run company than CMK yet over the past 17 days CMK's SP has outperformed JOY. 

JOY is a derivative play, similar to the Rails (CP, CN, Union Pacific etc. )in that they can be a indicator as to health of the coal industry.   For example, if CSX or Union Pacific is reporting increased rail loads of coal to seabourne ports, then this would contradict the news releases indicating that coal demand is down.  Similarly, JOY's one year backlog for mining equipment (continuos & longwall miners) may also offer some insight into the strength of the industry overall.

Kindest regards.
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