Manitowoc Shares Jumped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Farm and construction equipment manufacturers rallied again today, only this time Deere doesn't deserve the credit. China does. The Sino superpower eased local banks' capital reserve requirements, leading some to speculate that infrastructure-related lending could rise as a result.

So what: Several industrial equipment suppliers gained. Terex (NYSE: TEX  ) jumped more than 10% for the second straight day. Astec Industries (Nasdaq: ASTE  ) also recorded a double-digit gain. But Manitowoc (NYSE: MTW  ) topped them all by closing up 15.9%.

Now what: There's reason to believe in the rally. Despite concerns, China is still one of the world's largest and fastest-growing economies, and Manitowoc generated nearly 10% of its revenue from Asian customers last year -- double the ratio of five years ago. What do you think of the growth opportunity? Would you buy shares of Manitowoc at current prices? Please weigh in using the comments box below.

Interested in more information about Manitowoc? Add it to your watchlist.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

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Read/Post Comments (3) | Recommend This Article (5)

Comments from our Foolish Readers

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  • Report this Comment On November 30, 2011, at 9:33 PM, Yakush wrote:

    I would definitely buy Manitowoc at this price.

    I have been trading (well, more like investing in) this stock on and off for some years now.

    Just about a few months ago it traded well over $19, not to speak of 2-3 years ago when it traded in the $35-$40(!) range...

    I know the world have changed, and so did share prices, but this is a great company that among other things manufactures cranes and other infrastructure hardware used all over the world.

    And yes, i do currently hold the stock and am pretty sure that if the world is not heading into total financial colapse, then MTW will be among the fastest upwards moving companies.

  • Report this Comment On November 30, 2011, at 11:05 PM, MTW54220 wrote:

    I don't think the statement on Manitowoc is accurate.

    They had a drop in the Asia market of almost 70%

    As well as the company workers are on Strike as we speak

    Great product though, we just have to wait for everyone to not to be scared and skeptical

  • Report this Comment On December 01, 2011, at 12:23 PM, TMFMileHigh wrote:

    @MTW54220,

    >>They had a drop in the Asia market of almost 70%

    Not sure exactly what you mean by that but I can tell you that Capital IQ has 2010 revenue from Asia at $307.8 million versus $118.2 million in 2005.

    Thanks for writing and Foolish best,

    Tim (TMFMileHigh and @milehighfool on Twitter)

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