Near-Term Weakness Shouldn't Turn Off Investors to Misunderstood Joy Global (JOY) - Cramer
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Joy Global (NYSE: JOY) shares are higher following an interview by CEO Mike Sutherlin given to Jim Cramer on Thursday.
Fears behind Joy Global center around slowing growth in the Chinese economy. Sutherlin noted that a lot of the weakness in the stock surrounds a lack of understanding in the company's business model.
Sutherlin said that, while investors see Joy Global as a industrial equipment supplier, about 60 percent of the company's turnover comes from the service and support side of the business, which is a much less-volatile segment.
Looking ahead, Sutherlin said he has been disappointed right along with investors. He expected the economic recovery to be further along than it currently is, but he added that the company's order rate has been consistent.
Sutherlin admits that there might be some near-term weakness in the stock, but solid customer order growth and a continued rebound in the global picture hint at better things to come for Joy Global over a longer time frame.
Cramer remains optimistic on the company.
Shares of Joy Global are up 1.1 percent Friday.
Fears behind Joy Global center around slowing growth in the Chinese economy. Sutherlin noted that a lot of the weakness in the stock surrounds a lack of understanding in the company's business model.
Sutherlin said that, while investors see Joy Global as a industrial equipment supplier, about 60 percent of the company's turnover comes from the service and support side of the business, which is a much less-volatile segment.
Looking ahead, Sutherlin said he has been disappointed right along with investors. He expected the economic recovery to be further along than it currently is, but he added that the company's order rate has been consistent.
Sutherlin admits that there might be some near-term weakness in the stock, but solid customer order growth and a continued rebound in the global picture hint at better things to come for Joy Global over a longer time frame.
Cramer remains optimistic on the company.
Shares of Joy Global are up 1.1 percent Friday.
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