MILWAUKEE ( TheStreet) -- Investors bid up shares of Joy Global ( JOYG) after the maker of underground mining gear offered up a batch of evidence pointing to sanguine prospects for 2010.
First, there was the earnings-guidance tweak: The company tightened up its per-share target range for 2010, saying it now expects $2.85 to $3.05 on the bottom line. Previously, Joy was looking for $2.65 to $3.05 a share. Then there was the sharp rise in new orders reported by the company during the quarter. Bookings for original equipment surged 52%, which means that Joy Global has been rushing to restart manufacturing lines idled during the recession. As RealMoney contributor Gary Dvorchack pointed out earlier Wednesday, half of those "new" bookings were actually old bookings. That is, customers are re-inking letters of intent for new equipment that they'd canceled last year as they freaked out about the recession. In late trading Wednesday, Joy Global shares were trading at $54.55, up $3.06, or 6%, after earlier going as high as $56.39. Volume reached nearly 8 million shares, more than double the daily average over the last three months. Crosstown rival Bucyrus ( BUCY), which specializes in surface-mining equipment and made a big move last year to purchase the extraction-machinery segment of Terex ( TEX), saw its stock rise a much more modest 1.8%. Shares of Terex, however, which now focuses solely on the construction-equipment business, surged nearly 6% on heavy volume, causing the New York Stock Exchange to contact the company regarding the unusual movement, which is often sparked by takeover scuttlebutt. Terex, citing company policy, had no comment for the NYSE. Sure enough, it turned out that a JP Morgan ( JPM) analyst suggested in a research note Wednesday that it might make sense for Terex to "seek a strategic buyer for its remaining businesses," Reuters reported later in the session.