Manitowoc Breaking Out

Manitowoc (MTW) was a darling of the BRIC driven pre-Lehman days, supplying construction cranes all over the globe with 51% of sales overseas. They also make food preparation equipment, but 81% of sales are crane sales and service. The credit crisis knocked the stuffing out of this very credit dependent stock - no credit, no construction - no good economy, no consumer discretionary spending, which hurts the hotel/restaurant market for MTW's food gear. The market was especially brutal on this stock, but if you plot out their cash flow from operations, you see that maybe the brutality was overdone: (click to enlarge charts)

The stock has been put back to where it was in 2002 before anyone even knew what a BRIC was for Pete's sake. Current eps was indeed brutalized, standing (or lying) at a pathetic-$7. But cash flow and revenue have held up well making for a price/cash flow of 4.8 and price/revenue of 0.4 - a lot of bounce back potential. Technically, this looks to be beginning:

The stock has been gyrating in a dance of death below about $12 since the financial crisis began. But now it has produced a nice 100/200 dma crossover, gotten both moving averages parallel and sloping up, come back in to successfully test the 100, formed a fairly well defined resistance level, and has just now broken it with some nice volume and buying pressure. It looks to be done fooling around now. This one's a little dangerous though compared to say a gold stock. It is heavily dependent on an uninterrupted economic recovery. Any kind of trouble, and this one gets clobbered.