Top 5 Warren Buffett Companies To Buy Right Now

Top 5 Warren Buffett Companies To Buy Right Now: Joy Global Inc (JOY)

Joy Global Inc. is a manufacturer and servicer of high productivity mining equipment for the extraction of coal and other minerals and ores. The Company's equipment is used in mining regions throughout the world to mine coal, copper, iron ore, oil sands, and other minerals. The Company's underground mining machinery segment (Joy Mining Machinery) is a manufacturer of underground mining equipment for the extraction of coal and other bedded minerals and offers service locations near mining regions worldwide. The Company's surface mining equipment segment (P&H Mining Equipment) is a producer of surface mining equipment for the extraction of ores and minerals and provides operational support for many types of equipment used in surface mining. During the fiscal year ended October 28, 2011, the Company completed the acquisition of LeTourneau. On December 30, 2011, it acquired approximately 41.1% of Int'l Mining Machinery Holdings Limited's common stock to 69.2%.

Und erground Mining Machinery

Joy is a producer of underground mining machinery for the extraction of coal and other bedded materials. The Company has facilities in Australia, South Africa, the United Kingdom, China and the United States, as well as sales offices and service facilities in India, Poland and Russia. Joy products include continuous miners, shuttle cars, flexible conveyor trains, complete longwall mining systems (consisting of powered roof supports, an armored face conveyor and a longwall shearer), continuous haulage systems, battery haulers, roof bolters, crushing equipment and conveyor systems. Joy also maintains a network of service and replacement parts distribution centers to rebuild and service equipment, and to sell replacement parts and consumables in support of its installed base.

This network includes five service! centers in the United States and eight outside the United States, all of which are located in underground mining regi ons. This segment has a range of products, including Continu! ous miners, Longwall shearers, Powered roof supports, Armored face conveyors, Shuttle cars, Flexible conveyor trains (FCT), Roof bolters, Battery haulers, Continuous haulage systems, Feeder breakers, Conveyor systems and High angle conveyors.

Electric, crawler mounted continuous miners cut material using carbide-tipped bits on a horizontal rotating cutterhead. Once cut, the material is gathered onto an internal conveyor and loaded into a haulage vehicle or continuous haulage system for transportation to the feeder breaker.

A longwall shearer trams back and forth on an armored face conveyor parallel to the material face. Using carbide-tipped bits on cutting drums at each end, the shearer cuts 1.2 to 8.0 meters high on each pass and simultaneously loads the material onto the armored face conveyor for transport through the stageloader to the conveyor belt.

Roof supports use hydraulic cylinders to perform a jacking-like function that suppor ts the mine roof during longwall mining. The supports self-advance with the longwall shearer and armored face conveyors, resulting in controlled roof falls behind the supports. A longwall face may range up to 400 meters in length.

Armored face conveyors are used in longwall mining to transport material cut by the shearer away from the longwall face. Shuttle cars, a type of rubber-tired haulage vehicle, are electric-powered using an umbilical cable. Their purpose is to transport material from continuous miners to the feeder-breaker where chain conveyors in the shuttle cars unload the material. Some models of Joy shuttle cars can carry up to 22 metric tons of coal.

FCT's are electric-powered, single operator, self-propelled conveyor systems that provide continuous haulage of material from a continuous miner to the main mine be! lt. The F! CT uses a rubber belt similar to a standard fixed conveyor. The FCT's conveyor operates independently from the tra ck crawler system, allowing the FCT to move and convey mater! ial simul! taneously. Available in lengths of up to 570 feet, the FCT is able to negotiate multiple 90-degree turns in an underground mine infrastructure.

Roof bolters are drills used to bore holes in the mine roof and to insert long metal bolts into the holes to reinforce the mine roof. Battery haulers perform a similar function to shuttle cars and are powered by portable rechargeable batteries. Battery haulers feature a flexible center joint allowing them to maneuver in tight conditions and do not use a trailing cable, which allows for maximum flexibility in the mining process.

The continuous chain haulage system provides a similar function as the FCT, transporting material from the continuous miner to the main mine belts on a continuous basis, versus the batch process used by shuttle cars and battery haulers, but it does so with different technology. The continuous chain haulage system is made up of a series of connected bridge structures that utilize chain conveyors that transport the coal from one bridge structure to the next bridge structure and ultimately to the main mine belts.

Feeder breakers are a form of crusher that use rotating drums with carbide-tipped bits to break down the size of the mined material for loading onto conveyor systems or feeding into processing facilities. Mined material is typically loaded into the feeder breaker by a shuttle car or battery hauler in underground applications and by haul trucks in surface applications.

Conveyor systems are used in both above and under-ground applications. The primary components of a conveyor system are the idlers, idler structure, and the terminal which itself consists of a drive, discharge, take-up and tail loading section. The Continental high angle conveyor is a method for elevating or lowering materials ! continuou! sly from one level to another at steep angles. The Continental technology uses fully equalized pressing mechanism, which secur es material towards the center of the belt while sealing the! belt edg! es together. The high angle conveyor has throughput rates ranging from 0.30 to 4,400 tons per hour.

Surface Mining Equipment

P&H is the producer of electric mining shovels and a producer of walking draglines for open-pit mining operations. P&H has facilities in Australia, Brazil, Canada, Chile, China, South Africa, and the United States, as well as sales offices in India, Mexico, Peru, Russia, the United Kingdom, and Venezuela. P&H products are used in mining copper, coal, iron ore, oil sands, silver, gold, diamonds, phosphate, and other minerals and ores. P&H also provides logistics and a range of life cycle management service support for its customers through a global network of P&H MinePro Services operations strategically located within mining regions. In some markets, P&H MinePro Services also provides electric motor rebuilds and other selected products and services to the non-mining industrial segment. P&H also sells used electric mining shove ls, drills and parts.

Mining shovels are used to load copper ore, coal, iron ore, oil sands, gold, and other mineral-bearing materials and overburden into trucks or other conveyances. There are two types of mining loaders: electric shovels and hydraulic excavators. Electric mining shovels feature dippers, allowing them to load volumes of material, while hydraulic excavators are smaller. The electric mining shovel's use is determined by the size of the mining operation and the availability of electricity. Dippers can range in size from 12 to 82 cubic yards.

Draglines are primarily used to remove overburden to uncover coal or mineral deposits and then to replace the overburden as part of reclamation activities. P&H's draglines are equipped with bucket sizes ranging from 30 to 160 cubic yards. Surface mine! s require! breakage or blasting of rock, overburden, or ore using explosives. P&H MinePro Services provides life cycle management support, includi ng equipment erections, relocations, inspections, service, r! epairs, r! ebuilds, upgrades, used equipment, new and used parts, enhancement kits and training. Each life cycle management program is designed for a particular customer and that customer's application of the Company's equipment.

Advisors' Opinion:

• [By Ben Levisohn]

  JPMorgan’s iron and coal team are still bearish on coal and iron ore–and that doesn’t bode well for Joy Global (JOY). JPMorgan analysts Ann Duignan and Michael Conlon explain why:

• [By Neha Chamaria]

  The market turned bullish about Joy Global (NYSE: JOY  ) in recent weeks, but Longbow isn't impressed. The research firm downgraded the stock to "underperform" last week, planting a price target of $50 a share. That represents nearly a 20% downside from the stock's current price.

• [By Ben Levisohn]

  After gaining 6.7% yesterday following better-than-forecast earnings, shares of Joy Global (JOY) are rising again today after Merrill Lynch upgraded the mining company to Buy from Neutral today.

  Agence France-Presse/Getty Images

  Not everyone is so sure Joy Global is worth buying. Raymond James analyst Theoni Pilarinos and team think the optimism is priced into Joy Global’s shares:

  With commodity prices still under pressure and mining markets in continued surplus, we believe Joy's stock price has already baked in cautious optimism. Strong service revenue, prudent cost management–which should fuel a strong 2H14 (particularly 4Q)–and an improved 2015 outlook have already been incorporated into our numbers. More importantly, we think this optimism has been baked into the stock's current price, which is presently trading at 15x 2015E earnings. Accordingly, we would prefer to wait for a more favourable valuation pr! ofile or ! a more concrete end market outlook before taking a more constructive stance on the stock.

  Morgan Stanley’s Nicole DeBlase and team worry about Joy Global’s fourth quarter:

  The combination of a decent 2Q and positioning (high short interest) likely drove [yesterday's] 7% gain. However, we are concerned about the achievability of 4Q implied guidance, and still see downside to 2015e cons…

  On the call, JOY noted that 3QFY14 EPS will likely look similar to 2Q, which implies a sharp ramp to $1bn+ revenue and $1.09-1.49 EPS (+43-96% Q/Q) in 4Q. With orders of $1.05bn in 2Q, one might be inclined to call this achievable, but $100m of this will not ship until 2016e, and it is probably fair to assume that some of the current $1.6bn backlog will ship in 2015e. As such, JOY will need to book $1bn+ orders in 3Q14 to make 4Q implied guidance achievable. Given that management did not seem to believe that 2Q A/M bookings ($697m) are sustainable, we see the potential for a 4Q miss.

  Shares

• [By Ben Levisohn]

  Some easy money from the European Central Bank helped boost stocks today, as Caterpillar (CAT), Joy Global (JOY), Bio-Reference Laboratories (BRLI) and Amazon.com (AMZN) rose.

source from Top Stocks For 2015:http://www.topstocksblog.com/top-5-warren-buffett-companies-to-buy-right-now.html