November 5, 2008 -  An article by David Pett in yesterday’s Financial Post, “Wheels coming off equipment stocks,” quoted expert opinion on the prospects for construction equipment stocks.

“Bank of Montreal analyst Bert Powell believes the industry, like almost everything else, has simply been hard hit by the threat of a recession in Canada, along with falling commodity prices, which this sector depends on. Worse yet, Mr. Powell sees little relief ahead. "We believe that the heavy equipment industry fundamentals are challenged and there is a risk that market conditions will deteriorate further," the analyst said in a report last week. "Accordingly, we have revised [downward] our earnings estimates for our heavy equipment coverage universe."

For Canaccord Adams analyst Tom Varesh, the heavy equipment industry remains a healthy sector, despite the hurt it has suffered of late. He reminded investors that the sector will continue to benefit from the economic boom that has taken place in Western Canada over the past decade. "Furthermore, we posit that the construction industry in Western Canada -- with a solid pipeline of projects that extends out two to three years -- will need to rent and purchase construction equipment in order to complete committed projects."”