RSC Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of construction equipment renter RSC Holdings (NYS: RRR) jumped as much as 10.3% on moderately high trading volume.

So what: The construction equipment sector is jumping all over the place today on news that Caterpillar (NYS: CAT) is buying Chinese operator ERA Mining-Machinery in a $900 million deal. Mining-gear builder NACCO Industries (NYS: NC) and direct RSC rival United Rentals (NYS: URI) also came very close to double-digit intraday gains.

Now what: RSC is an exclusively North American business and doesn't have any interests in China, but Caterpillar's relatively big buy is renewing investor confidence in the construction industry as a whole. RSC shares have now bounced more than 62% off midsummer lows while United Rentals doubled over the same period. Investors may be betting on buyout bids of their own here.

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At the time thisarticle was published Fool contributor Anders Bylund holds no position in any of the companies mentioned. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check out Anders' holdings and bio, or follow him on Twitter and Google+. We have a disclosure policy.

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