Someone Needs to Dig Out Joy Global (JOYG)

I prefer Bucryus (BUCY) out of the 2 main 'mining equipment' makers but Joy Global (JOYG) is a quality company absolutely being buried in this very tough market. This seems like an overreaction but in this shoot first, ask questions never environment you just lost 1/5th of your investment overnight.

Joy has a very detailed earnings report, worth the read but I am looking at 2 things - #1 gross margins because my belief has been that higher input costs (steel, oil derivatives) will cut into profits for equipment makers and #2 industry outlook.

Looking at gross margins this year - they came in at 27.2% versus a year ago 31.7%. So that signals trouble, unless you use the same logic people are using to drive up consumer discretionary stocks i.e. "hey that's backwards looking, if you look ahead as commodities drop that should no longer be an issue." Funny how the marke...