one theme i think will play out very well is the global infra/commodities/energy theme, or g-i/c/e/. second quarter earnings reports confirm my fundamental analysis of the global infra boom.
tex is the most undervalued machinery stock in the market today. it should grow 15%+ in revenues and profits through 2010 with excellent positions in mining equipment, cranes, and aerial work platforms. and yet it trades for only 9x's earnings and 6x's 2008 cash flow estimates. this is too cheap to be true.
the global infrastructure markets are just inhaling this equipment to create a reasonable standard of living for their populations. terex has a record backlog and many large equipment pieces are sold out into 2009. this gives them a fair degree of visibility for this year.
terex is just an example of the type of value one can find in the cyclical growth part of the equity market, especially in the g-i/c/e sectors. bouts of profit taking are bound to happen from time to time. but this theme should persist for the next couple of years.
disclosure: n/a, but thinking about it