Bucyrus Int'l (BUCY)

The pick and shovel companies that assist miners in their operations have had an excellent run, none more so than Bucyrus (BUCY). With solid growth the company recently gained better than 60% out of a cup with handle base and has now paused to form what O'Neil calls a Square Box base.

We have every reason to expect mining to remain strong and thus seek entry into this stock. We are intrigued by the way price recently undercut the lows in the base and then bounced back. Today price is starting to push back higher and we are buying at the market with a stop under $50. Our objective is to participate in a break out to new highs.

Competitor Joy Global (JOYG) is set to release earnings next week. Although BUCY will not report until February this event should be a near term catalyst for the stock.