Machinery - Industry Analysis - by Alpha Street Research
Alpha Street Research
19 Mar 2013
Available for Immediate Download
www.AlphaStreetResearch.com - The Machinery Industry is a cyclical, capital-intensive sector. Major markets served include agricultural, construction, energy, industrial, infrastructure, mining and transportation. Among the varied products and services are tractors, engines, compressors, generators, cranes, tools, logistics, financing and remanufacturing. North America, Europe, the Middle East and Asia are the most significant geographic markets, but there are few, if any, countries around the world not served by the Machineries. Working capital and cash flow management are crucial to a company's success. Internal and external expansion may be funded with cash, equity and/or debt. Ultimately, companies aim to grow and reward investors with share-price appreciation. Machinery stocks are best suited to investors seeking above-average capital gains. Such market participants must be mindful of the macroeconomic environment, given the industry's close links to the business cycle. Ideally, investors with a 3- to 5-year view should buy into the sector when end markets have bottomed. Momentum investors can benefit in the midst of an economic upswing.