A ‘Rock Bottom Valuations’ Trade: Stephen Weiss
If you’re looking for a value play, trader Stephen Weiss has a pick for you.
The company's equipment is used throughout the world to mine coal, copper, iron ore, oil sands and other minerals
“It’s the last independent pure drilling and equipment play,” Weiss tells us, “and management is strong.”
Weiss also says he’s been buying the stock over the past few days, at an average price of $55.60, approximately.
And yes, Weiss is bullish even though Joy Global’s stock has lost 27 percent year-to-date and is currently off 40 percent from its highs in February.
The stock took a big hit late last month after Joy Global warned of troubles ahead due to weaker energy demand and a shift by U.S. power companies to natural gas. But during the same earnings announcement, Joy Global said net income jumped almost 32% as shipments increased.
And with that kind of earnings power, Weiss thinks the stock is simply too cheap.
“I covered my steel shorts and initiated this long position in this name . I think it’s a quality company at a low multiple.”
Posted by CNBC's Lee Brodie
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CNBC.com with wires.