John O'Connell, CFA Cummins CMI-N BUY Aug 11, 2014

It is very cyclical and for some of them he thinks it is only mid way through the downturn. It is a good cash flow generator for sure.

He is looking for what the tax policies are coming out of the Trump administration. If he offers accelerated depreciation then this one would benefit.

Industrials usually show strength from January to May, but CMI-N has shown weakness earlier than expected. This has him worried about this company and this sector as a whole. Technical support has been broken as well, so he would not buy this.

Formerly made dirty truck engines, but now make EV chargers. The new CEO revealed their new zero-emission mandate.

A great industrial company that yields almost 3%, but industrials are selling off now because of higher interest rates. Cummins will come back, but it will take time, because a slowdown is hurting the industrials more than any sector.

A truck engine maker that has a subsidiary that makes hydrogen fuel cells. They're working on hydrogen-powered truck engines.

Industrials have outperformed the past few years. CMI's trucking has seen a modest improvement, but wants to see more. Earlier this year they went through a period of adjustment in freight.

They reported a blow-out quarter, sending shares 9% higher. They beat revenues in 4 of their 5 largest divisions, boasted expanded marginsThey are part of the transition to nuclear energy, even though it will likely get less support under Trump, at a pace that will match customer needs. Also, he likes their power systems business (generators, commercial power systems for buildings), timely during the data centre boom. Caveat: While only 9% of their sales come from China, those could be hit by Trump tariffs.