Stockerati

Bucyrus International: A Mixed Bag

Oil price increases> energy increases> operating cost for mines increases> eats into margins>mining companies try to get more out of less> machinery upgrade cycle prolonged> BUCY hurt.

Exploring, discovering, setting up infra-structure of new mines is not as simple or fast or cheap, so they don't pop up immediately

Bucyrus International: A Mixed Bag

It's just that the manufacturing sector is extremely vulnerable to energy prices. In this case, the increase in oil prices is cutting into BUCY's margins and thereby, making investors pessimistic on its future. BUCY will survive. However, for me it's a spork (see my blog for why :))

Stockerati (stockerati.com)