Finding Inspiration in Industrials
A stock picker is forever on the prowl for the freshest theme from which to select the next potential winning call. Once I even went as far as to doing the analysis on Brunswick (BC) because I noticed more beer-loving men on my Sunday night bowling league tossing the company's pretty expensive balls down the lane.
The trigger that got me to rationalize that the industrial complex is deserving of a medium-term move higher was catching an episode of "Gold Rush," a reality show that follows the trials and tribulations of three gold-mining teams in Alaska. I was amazed at how primitive the gold-mining process is for smaller businesses. From panning for gold to fixing constantly breaking parts on the dredge (separates gold from dirt), the tools have basically lacked any innovation throughout the years. Furthermore, I found the somewhat carefree nature of making a capital equipment purchase that could enhance the mine's operating performance as interesting, perhaps a result of the government's generous depreciation policy designed to spur growth and cash on the books earmarked for investment....579 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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