Manitowoc (MTW) - Cranes are an Endangered Species

There used to be a joke way back... well this summer - what was the most common bird in the Middle East? The Crane. This was due to the construction boom happening [Jul 12: Where is your Gas Money Going?] [Feb 27: $2 Trillion of Petrodollars Needs a Home this Year] ... the stock that engendered the crane boom was Manitowoc (MTW). Something tells me cranes were the favorite birds of hedge funds as well - the stock is down 80% since mid June. Today they dared to reduce 2008 estimates by 5%, and the stock is down 14% as reward; on top of the other 70% it had already fallen.

You'd think it was an unprofitable debt laden piece of trash. Not so much.

• The company also lowered its profit outlook for the full year to a range of $3.15 to $3.25 per share. Analysts expect $3.44 per share in 2008.

At some point in latter 2009 there is going to be some huge money to be made in being LONG global growth stocks as China reflates its economy and brings along greater Asia - and European countries that did not follow stupid US financial policies (looking at you UK and Spain) will begin to pick up as well - remember our thesis; the world will lead the U.S. out of this mess, not vice versa. We just need to make sure we have capital left by the time that time comes around.

But for now, yet another 3x earnings darling. Save the cranes.

No position