If you look at quarterly results from mining equipment maker Joy Global you’d expect a commodities comeback -- at least at first glance. The company posted a 20 percent rise in quarterly profit, handily beating market expectations.
The company, which makes giant shovels, drills and draglines to extract coal, copper, iron ore, oil sands and other minerals, also noted that the second quarter saw some improvement in commodity demand.
So why are rivals such as Terex in negative territory?
Probably because bookings at Joy Global tumbled and cancellations mounted. Chairman and Chief Executive Mike Sutherlin said revenue going forward would probably be soft unless the markets improve. And as a result, Joy Global will begin cutting jobs.
Considering the mixed news, how should you trade?
I think it’s an exciting time in the space and I’d build a position in this stock, counsels Tim Seymour.
I expect to see Joy Global pull back more, counters Guy Adami. Wait.
I also think valuations are ahead of themselves, counsels Pete Najarian.
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Trader disclosure: On June 3rd, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Seymour Owns (TTM), (AAPL), (BAC), (BBY), (FCX), (EEM), (PBR), (NOK), (MGM); Seymour Is Short (VALE); Seymour's Firm Is Short (VALE); Grasso Owns (V), (AMZN), (WMT), (RIMM); Grasso's Clients Own (ARO), (V), (OXY), (PBR), (WMT), (RIMM), (ARO); Najarian Owns (CELG); Najarian Owns (AMAT) Calls; Najarian Owns (BX) Calls; Najarian Owns (FCX) Call Spread; Najarian Owns (INTC) Call Spread; Najarian Owns (MOS); Najarian Owns (WNR) Calls; Najarian Owns (XHB) Call Spread