Kamal Ahuja

Caterpillar Is Undervalued

Since CAT is considered to be a Cyciical company, I believe many analysts will try to call a "top" on earnings. The selloff in CAT's shares is a win for those analysts for now. Never mind that CAT is having their best year ever in terms of revenue growth. I further believe that the infra buildout in developing nations is far from over, and CAT could see sustained revenue growth in the coming years once the turmoil in the financial markets settles and credit eases. Commodity prices have already retracted from their recent highs, and this ought to lower CAT's material costs. I continue to be bullish on the sector at these valuation levels. I am long TEX, one of leading companies in the sector.

Buffett's Battery Buy

One way to invest in the impending lithium boom is to buy the domestic lithium producers (FMC, ROC). I have written about both companies in the links provided below. Another lithium producer often talked on Cramer / Mad Money is SQM (which will also be the subject of my next article in the lithium series). All three company valuations have pulled back substantially from recent all-time highs; the buying opportunity at these levels may not last for too long.

seekingalpha.com/artic...

seekingalpha.com/artic...

Solar Generation Costs on Track to Achieve Grid Parity

Hi, this is the author. I want to thank you all for your comments, concerns, and a lively discussion.

First Solar 'Outsources' New Facility to the USA

In reply to Zenfar's question, I read that the Optisolar amorphous-Si thin-film based solar panels will be manufactured in Hayward and Sacramento, California. I also believe AMAT could be a beneficiary of this announcement since their Sunfab line is based on amorphous-Si thin film solar panel production.

Outlook for the Indian Economy

Thank you for your analysis Edward. It was a good read.

The Indian government faces a formidable task of managing inflation. I believe this should become the top priority of the present administration. Clearly, energy costs are distorting the economic picture with inflation eating away any perceived real gdp growth.

Terex Valuation Driven to Dirt Amidst Street Rubble

Hi, I am the author of this article. I would like to clarify that when I discussed western construction practices as a growth driver for construction and heavy equipment manufacturers, I was implying the use of sophisticated and novell equipment such as truck mounted telescopic boom cranes and concrete pumps. The examples illustrated on the use of manual labor and lifting are based on typical observations and not measurement.

Strong Growth in Lithium Demand to Power FMC Corp., Rockwood Holdings

July 30, 2008

Both ROC and FMC reported strong quarterly earnings this morning.

Rockwood Holdings Reports Q2 (Jun) earnings of $0.68 per share, excluding non-recurring items, $0.08 better than the First Call consensus of $0.60; revenues rose 17.8 percent YOY to $945.5 million vs the $902.1 million consensus. Company reaffirms FY08 revenue growth guidance of +8% (Adapted from Briefing.com / In Play)

FMC reported that 1Q Revenues jumped 23 percent to $806.6 million. Excluding a restructuring charge of $14.5 million, the company posted earnings of $1.29 per share. Net income in the quarter was $84.4 million, or $1.10 a share. FMC also again raised its 2008 profit forecast, excluding restructuring and other charges, to $4.20 to $4.40 per share (Adapted from Reuters report).

Getting Charged Up About Lithium

Thank you Julian Murdoch for mentioning my name and reports on Seeking Alpha. One of the reports attempts to answer your question on how many laptop batteries it would take to run an electric car.

In addition to FMC and ROC (both of which have retracted 15-20% from their recent highs), SQM is another way to invest in the impending lithium boom. Incidentally, SQM announced that "its current annual lithium carbonate capacity would increase from 30,000 tonnes to about 40,000 tonnes by the third quarter of this year".

Terex: Overlooked Bargain

TEX reported very good quarterly results yesterday, with strength in cranes and mining overshadowing some weakness in aerial work platforms and roadbuiding. I am pleased to see the company buying $500 million of its own stock (reaffirms faith in their own business outlook). But what really amazed me this week was CAT revenue guidance of $50 billion for 2008. Did you know $50 billion was Jim Owens (CAT Chairman/CEO) target for 2010? Both CAT and TEX are down $2 -$3 this morning. AP reports that "shares of heavy equipment maker Caterpillar fall as investors eye projected steel-price hikes". The market always needs something to worry about! CAT announced corresponding price increases to offset rising materials costs. I believe that both companies are excellent buying opportunities at this price level.

Canadian Solar: The Next Solar Takeover Target?

Kelvin Schulle quotes "Acquiring Canadian Solar is a good way for the company (Suntech Power / STP) to move to the next level and achieve its global sales target". I believe that acquiring a company solely for the purpose of gaining market share is one of the worst strategic moves a company can make (except when it is a distress sale). There really is no need for the solar PV module manufacturing sector to think about consolidation at this time. Most of the emergent companies have been successful in raising additional capital to expand production and operations. Unlike the internet companies in the "bubble years", most of the solar companies are on their path to profitability. I will be looking for other reasons to warrant consolidation in this sector.

Jim Kingsdale: Selling SQM and Bullish on Dryships

For those of you with an interest in two domestic producers of Lithium, you can read about FMC Corporation (FMC) and Rockwood Holdings (ROC) in my article at the following link:

seekingalpha.com/artic...

Both companies still trade at respectable and lower valuations than SQM.

Bank of America: The Most Popular Dividend in America?

I believe that BAC is a terrific franchise with one of the best diversified portfolios of financial product offerings. I have liked and followed their M&A strategy for a while. BAC at $31 and a 5-year average dividend yield of 4.20% should be a superior investment in the long term.

Subprime Skeletons Are Still In The Closet

Grace, what's up with FMC? I think you meant FRE. You should ask the editors to remove your article from the FMC forum/board.

Manitowoc-Enodis: Not a Poison Pill, But Not Good Strategy Either

Hi, this is the author. As a reply to the comment posted by Damyata, I'd like to reply that this article in no way undermines the foodservice sector. It may be a terrific sector to invest in. This article is about two issues; developing core competencies (which I believe is in cranes for MTW), and the means of financing the acquisition by undertaking ~ 10X present debt level. And again, I am not challenging Enodis valuation.