Gavekal Capital: Construction & Farm Machinery Today's Weakest Link

Tuesday, October 29, 2013

Construction & Farm Machinery Today's Weakest Link

Cummins is leading the construction and farm machinery stocks down this morning after reporting revenues roughly $100 million under estimates. In addition, the company lowered revenue estimates for fiscal year 2013, citing, "Revenues were below our expectations as we continue to face an environment of weak demand for capital goods in most of our major markets. Our focus on lowering costs in all parts of our business positions us well to deliver strong earnings growth as market conditions improve."

We find many unattractive looking stocks in this group, most either locked in persistent downtrends or beginning to break down after prolonged tops. The worst looking charts are below.

About Gavekal Capital

Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
We offer the Gavekal Knowledge Leaders Strategy in multiple products for global investors. For more information about our product offerings please visit http://www.gavekalcapital.com.
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