Post by
stockhousepundit on Jul 14, 2011 1:32pm
Joy Global to Buy Stake in China's IMMH
https://www.bloomberg.com/news/2011-07-14/joy-global-to-buy-stake-in-china-s-international-mining-for-583-6-million.html
An Hombre might ask, "What's that gottado with CMK?"
A: Further consolidation in this sector. Caterpillar has just finalized the acquisition of Bucyrus.
B: This is a secondary, or derivative play, on the mining sector in general, lending credence to overall strength of the industry.
C: This is a Chinese company, who will ultimately be acquired in whole by a US company, according to the Hong Kong takeovers code. Providing a foothold for heavy equipment manufacturing in the country, and, the ability to capitalize on the feroscious appetite China has for raw materials.
China is not slowing down (despite what you hear).
The more equipment they need, the more raw materials they require to make the steel. The more steel they need, the more they need to build additional steel mills. The more steel mills they build, you guessed it, the more they need raw materials. And so on, and so on, and so on...
Nes Pas?
Comment by
stockhousepundit on Jul 14, 2011 1:52pm
"The Guru," appears to agree.
https://www.thestreet.com/video/11185408/cramer-buy-caterpillar-and-joy-global.html?puc=_booyah_html_pla1&cm_ven=EMAIL_booyah_html&s=1#1054405925001