#$mtw

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Analog Devices, Ticker: $ADI

Analog Devices, $ADI, comes into the week pulling back to support. The RSI is dropping in the bullish zone with the MACD positive and falling. Look for a drop through support to participate…..

Broadcom, Ticker: $AVGO

Broadcom, $AVGO, comes into the week at support. It has a RSI in the bullish zone with the MACD positive. Look for a break of support to participate…..

First Solar, Ticker: $FSLR

First Solar, $FSLR, comes into the week stalling in a move higher. The RSI is dropping in the bullish zone with the MACD level and positive. Look for a drop to participate..

Intuitive Surgical, Ticker: $ISRG

Intuitive Surgical, $ISRG, comes into the week at support. It has a RSI in the bearish zone with the MACD negative. Look for a drop through support to participate…..

Manitowoc, Ticker: $MTW

Manitowoc, $MTW, comes into the week dropping from a high. It has a RSI falling with the MACD crossed down. Look for continuation to participate…..

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which heading into March options expiration, saw equity markets register their worst week in months.

Elsewhere look for Gold to continue its move higher and possibly out of consolidation while Crude Oil consolidates in a tightening range. The US Dollar Index looks to continue in consolidation while US Treasuries rise in their consolidation. The Shanghai Composite looks to pause in its uptrend while Emerging Markets trend lower.

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Covanta, Ticker: $CVA

Covanta, $CVA, confirmed a double bottom when it pushed up over the June high in early November. It has continued higher since. The price pushed over short term resistance Friday with the RSI rising in the bullish zone and the MACD flat but positive. Look for continuation to participate…..

Manitowoc, Ticker: $MTW

Manitowoc, $MTW, also confirmed a double bottom on a move over the June high in December. It paused shortly after and then moved up into the current consolidation. The RSI is bullish with the MACD rising and positive. Look for a push up out of consolidation to participate…..

Prudential Financial, Ticker: $PRU

Prudential Financial, $PRU, also had a peak in June. It traded sideways for over 5 months after stalling there though. It moved higher again in November and is starting higher again now. The RSI is rising in the bullish zone with the MACD moving up and positive. Look for continuation to participate…..

Telephone and Data Systems, Ticker: $TDS

Telephone and Data Systems, $TDS, tried to break higher in August but quickly failed. it fell back to a higher low and consolidated until breaking to the upside Friday. The RSI is rising and bullish with the MACD positive and climbing. Look for continuation to participate…..

United States Cellular, Ticker: $USM

United States Cellular, $USM, also pulled back from an August high. It found support in October and has been consolidating in a range. Friday saw it rise to resistance with the RSI rising and bullish and the MACD positive and moving up. Look for a push over resistance to participate…..

If you like what you see sign up for more ideas and deeper analysis using this Get Premium link.  

After reviewing over 1,000 charts, I have found some good setups for the week.  These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which heading into the Martin Luther King weekend and with January Options Expiration in the books, saw equity markets looking a bit tired.

Elsewhere look for Gold to continue its short term pullback while Crude Oil continues to trend higher. The US Dollar Index is trying to bounce in the downtrend while US Treasuries trend lower. The Shanghai Composite looks to continue higher while Emerging Markets meet resistance as they test all-time highs in an uptrend.

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Donaldson, Ticker: $DCI

Donaldson, $DCI, moved quickly to a low in March after topping in December. It recovered from there, rising to a top at the beginning of June, before a pullback. It ended last week moving back higher with the RSI rising into the bullish zone and then MACD crossed up and positive. Look for continuation to participate…..

Fiserv, Ticker: $FISV

Fiserv, $FISV, bottomed in March and then started to move higher. It slowed as it approached the 200 day SMA and then reversed lower again in June. It found support near the end of the month. Last week it finished making a higher high with the RSI rising and the MACD lifting and about to move to positive. Look for continuation to participate…..

Manitowoc, Ticker: $MTW

Manitowoc, $MTW, started lower in December, and finally found support in April. It consolidated there until reversing higher in May. The move higher stalled at the 200 day SMA and fell back. It touched the 50 day SMA and reversed higher. It ended last week moving up and with a RSI pushing into the bullish zone and MACD crossed up and rising. Look for a push over resistance to participate…..

Sherwin-Williams, Ticker: $SHW

Sherwin-Williams, $SHW, bottomed in March and headed higher in a strong trend. It reached the prior high by early June and stalled. It has consolidated since. Friday it broke consolidation to the upside with the RSI rising in the bullish zone and the MACD crossed up and positive. Look for continuation to participate…..

Scotts Miracle-Gro, Ticker: $SMG

Scotts Miracle-Gro, $SMG, started higher off of a March low and continued to a top in May. It pulled back from there through the 50 day SMA and found support, reversing back higher in late June. It comes into the week near resistance with the RSI rising in the bullish zone and the MACD moving higher and positive. Look for a push over resistance to participate….

If you like what you see sign up for more ideas and deeper analysis using this Get Premium link.  

After reviewing over 1,000 charts, I have found some good setups for the week.  These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the July Options expiration in the books, saw equity markets showed some rotation, out of technology and into small caps and, to a lesser degree, large caps.

Elsewhere look for Gold to consolidate in its uptrend while Crude Oil consolidates under resistance. The US Dollar Index continues to drift to the downside while US Treasuries rise in the consolidation range. The Shanghai Composite looks to continue the pullback in the uptrend while Emerging Markets pause in their uptrend.

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Amgen, Ticker: $AMGN

Amgen, $AMGN, appears to have been building a very long top since July last year. Coming into the week it is piercing support with the RSI entering oversold territory and the MACD falling and negative. Look for continuation to participate lower…..

JD, Ticker: $JD

JD, $JD, has been rounding up out of a bottom. Two weeks ago it printed a Golden Cross in its consolidation. The RSI has reset lower in the bullish zone with the MACD also pulling back from highs but positive. Look for a break of consolidation to participate…..

Manitowoc, Ticker: $MTW

Manitowoc, $MTW, started a move lower in August that found support in December. Since then it has made a higher low and is on the way towards a higher high. The RSI is rising and bullish with the MACD positive and lifting off of the zero line. Look for continuation to participate…..

Sensata Technologies, Ticker: $ST

Sensata Technologies, $ST, rose out of a double bottom in February, finding resistance into the end of the month. It pulled back to a higher low into March and then reversed. It comes into the week at resistance with the RSI rising and bullish and the MACD positive and moving up. Look for a push over resistance to participate…..

Western Union, Ticker: $WU

Western Union, $WU, started moving lower in June last year and found a bottom in December. Since then it has taken two legs higher and retrenched after each. It is now moving back higher with the RSI rising in the bullish zone and the MACD level and avoiding a cross down. Look for continuation to participate…..

After reviewing over 1,000 charts, I have found some good setups for the week.  These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with April Options Expiration behind, sees the equity markets held up well and still looked strong.

Elsewhere look for Gold to head lower while Crude Oil pauses in its move higher. The US Dollar Index looks to continue to move sideways while US Treasuries may be ending their pullback. The Shanghai Composite and Emerging Markets look to continue to move to the upside.

$MTW 2018-08-21 : Transcripts- Edited Transcript of MTW earnings conference call

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Q2 2018 Manitowoc Company Inc Earnings Call

Manitowoc Aug 22, 2018 (Thomson StreetEvents) — Edited Transcript of Manitowoc Company Inc earnings conference call or presentation Tuesday, August 7, 2018 at 2:00:00pm GMT

TEXT version of Transcript

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The acquirer offers a 20% premium for the Milwaukee group's stock.

By Laura Board

Japanese construction-gear maker Komatsu Ltd. has agreed to pay $3.7 billion including debt for Milwaukee-based Joy Global Inc. (JOY) in a bet on long-term growth in the mining equipment sector.

Komatsu said it would pay $28.30 per Joy Global share, which is 20% more than the target's $23.55 closing price on Wednesday. That values the stock at $2.89 billion, the bidder said.

The Tokyo acquirer said the purchase reflects a recently launched three-year plan to strengthen its mining equipment business, where it lacks underground mining gear, in order to secure sustainable growth.

"Demand for mining equipment has declined dramatically from the peak, reflecting economic slowdown in emerging countries and low commodity prices. Over the long term, however, the mining equipment business is projected to grow, driven by population growth and rapid urbanization around the world," said Komatsu, which is led by president and CEO Tetsuji Ohashi.

The Japanese company pounced on Joy Global at a time when its shares are down almost 18% on the year. The target since mid-January has been steadily rising from lows of under $9 on bid expectations, though takeover interest for Joy and similarly beleaguered U.S. industrial companies was seen more likely to come from China, which recently overtook the U.S. as the largest outbound acquirer, than Japan.

The takeover may buoy bid hopes for other industrial companies, including cranes maker Manitowoc Co. (MTW). In London mining and construction equipment maker Weir Group plc was up 2.7% in early trading on Thursday.

Joy Global, led by president and CEO Ted Doheny, had sales of $3.17 billion last year and made a net loss of $1.2 billion.

In a statement Doheny called the deal a "compelling transaction which delivers substantial and certain value to our stockholders as well as expanded options for our customers and employees going forward."

Komatsu will keep its target's headquarters and brand.

Komatsu, which had a market value of ¥2 trillion ($18.7 billion) as of Thursdays' close, derived ¥450 billion of sales from mining equipment in its last financial year.

Komatsu plans to finance the acquisition through funds on hand and bank loans and said it does not expect to issue new shares.

The Komatsu offer is structured as a so-called reverse triangular merger between Joy Global and a wholly owned subsidiary that the Japanese group has established to buy Joy Global.

Joy Global will be the surviving company and the shares of the Komatsu bid vehicle will be converted into outstanding shares of the surviving company, making that entity a wholly owned unit of Komatsu.

Joy Global said on Wednesday it would sell its steel plate mill in Longview, Texas, to Nucor Corp. (NUE) for about $29 million.

Besides having a Carl Icahn deputy on the board, there are other reasons why a soon to be spun-off foodservices division could be sold.

by Ronald Orol

As construction crane and foodservices company Manitowoc Co. Inc. (MTW) prepares to split into two in the first quarter of 2016, there are indications that investors are piling into the Wisconsin-based company meaning that one--or both of the new companies could go up for sale.

Manitowoc's plan separate the two disparate businesses, announced in January, was hastened by Carl Icahn's calling for the split.

In its settlement with Icahn the company agreed to a number of governance provisions for the new foodservices company that could make it easier to be sold. Annual board elections, a poison pill threshold limited to 20% and a provision allowing shareholders owning 10% of the outstanding shares to call a special shareholder meeting, are all shareholder-friendly provisions that make it easier for a change of control to take place. Plus, Icahn's general counsel, Jesse Lynn, was installed on Manitowoc's 10-person board in April. Expect Lynn to keep a watchful eye on the company and possible strategic options down the road. (Lynn did not return calls seeking comment.)

The February settlement also requires the foodservice business to provide "non-competitively sensitive non-public information" if there are potential acquirers under certain circumstances. That provision is an indication that Icahn believes the unit may make a good candidate for acquisition.

And Icahn, who owns about 8% of Manitowoc, is being joined by other hedge funds that could back him if a deal is on the horizon. In June, Larry Robbins' hedge fund, Glenview Capital Management, reported owning a 7.1% stake in an activist securities filing. The fund manager said in the filing that he may talk to Manitowoc's management team, board and other shareholders about "existing or potential strategic partners, potential acquirers or competitors." Glenview occasionally gets involved in activist campaigns and the fund would likely back a proxy fight should Icahn decide to take action. A Glenview spokesman declined to comment.

Relational Investors LLC, which was the first activist fund to call for a split, appears to be still in the company at a little less than 5%, according to its securities filing for the second quarter. Since Relational founder Ralph Whitworth had to step down for health reasons, the fund has been gradually winding down its position, so it's meaningful that it still appears to be maintaining that holding.

If a wolfpack of activists together own roughly 20% or a fifth of the company's market capitalization, it suggests Icahn may have real support, should it come down to a proxy fight if the new foodservice company doesn't do his bidding. At the very least he would be able to cobble together the roughly 2% extra needed to call a special shareholder meeting for the purpose of holding an expedited proxy contest.

Analysts also believe that a sale could be forthcoming. Robert W. Baird & Co. analyst Mircea Dobre said in a July 20 report that both the crane and foodservices business could become acquisition targets "post-spin." The analyst said his sum-of-the-parts valuation is $25 a share, substantially up from the company's recent trading price of $17 a share.

Manitowoc on July 28 appointed Hubertus Muehlhaeuser as CEO of the company's foodservice business, a move suggesting that the spinoff is progressing as planned. Manitowoc's current CEO, Glen Tellock, will lead the crane business post-spin.

Dobre noted on July 31 that even though Manitowoc missed expectations in its second quarter earnings report there are "multiple scenarios" where an "imminent business separation" unlocks value not currently reflected in the share price.

Seth Weber, an analyst at RBC Capital Markets, recently dropped his base sum-of-the-parts valuation for Manitowoc to $19 a share, with a potential upside scenario of $22 a share. Nevertheless, he noted that the pending spinoff of the foodservices unit and activist activity represented a potential catalyst for the share price.

According to another analyst, potential buyers for the foodservice business could include Illinois Tool Works Inc. (ITW). ITW makes technology for the food industry and could be interested in buying the division's ovens, beverage dispensers and ice machines to expand in the restaurant industry. He added that Illinois Tool Works has already indicated an interest in part of the business. It offered to buy Enodis PLC, a U.K.-based industrial equipment maker that was ultimately acquired by Manitowoc for $2.7 billion in 2009. Another potential buyer: Dover Corp. (DOV), which has a refrigeration and food equipment unit.

Officials from Manitowoc, Illinois Tool Works and Dover did not return calls.