Joy Global (JOY)

[winston]

THINGS ARE GETTING 'LESS BAD' IN THE MINING SECTOR

Things have gotten "less bad" in the mining sector... and it's boosting shares of one of the industry's top "picks and shovels" providers.

Regular DailyWealth readers are familiar with using "picks and shovels" to profit from sector and commodity booms (read our educational interview on the subject here).

"Picks and shovels" providers don't bet the farm on one project... they sell vital goods and services to an industry.

One great example is Joy Global (JOY). With annual sales of around $4 billion, Joy is the world's leading manufacturer of underground mining equipment.

As analyst Brian Weepie noted in a recent Growth Stock Wire essay, about 40% of the company's revenue comes from the mining sector. That makes its share price a good gauge of what's going on in the mining business.

As you can see in the two-year chart below, Joy's shares lost about 80% of their value during the brutal bear market in commodities. But since the start of this year, things have gone from "bad" to "less bad" in the mining business.

Joy's stock has soared 130% since hitting a low in late January... carving out a new uptrend in the process. As Steve likes to say, things don't have to get "good" for stocks to soar... they just have to get "less bad."

Source: Daily Wealth