Friday, November 20, 2009

Hedge: Long LAYN Short CAT

LAYN is in the mining business, like CAT is, by selling machinery. It has a better balance sheet than CAT does (less leverage) and provides more, I believe, machinery to the gold mining industry. So I believe it's a great hedge; especially with the thought that it may be bought out by a behemoth like CAT. It is also a play on the rising price of precious metals.

No comments: