Don’t believe the analyst hype. Despite both BofA Merrill Lynch and Goldman Sachs upgrading Joy Global (NYSE:JOY) stock in recent weeks, the long-term outlook for the coal industry is bleak. It might not go to zero, but its size and use as an energy source is dwindling.
The company’s new initiatives – direct service, hard rock and industrial minerals, reduced capacity, inventory reductions, share buybacks, new product development and high-growth markets – may prove effective but in the end will likely fail to produce value for shareholders. Continue Reading »