With some improvement in its core construction and mining markets, Komatsu (OTCPK:KMTUY) has done pretty well since my last update – outperforming underground mining equipment specialist Epiroc (OTCPK:EPOKY) and mining capex provider Weir (OTCPK:WEGRY), but not keeping pace with Caterpillar (CAT), CNH (CNHI), or Deere (DE) over that time.
I do like Komatsu’s commitment to areas like automation and electrification, but I also believe the company has been too slow dealing with challenges to its Indonesian coal mining and Chinese excavator businesses. An infrastructure stimulus bill in the U.S. and strong global commodity prices could extend this recovery, particularly given over-aged mining equipment fleets around the world, but I look at this as more of a trade now than a fundamental recovery story.
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Komatsu Emerging From The Downturn With Upside If Mining Companies Start Spending Again
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