Caterpillar

CAT-N

NYSE:CAT

137.21
0.28 (0.20%)
Caterpillar Inc. is an American corporation which designs, develops, engineers, manufactures, markets and sells machinery, engines, financial products and insurance to customers via a worldwide dealer network.
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Analysis and Opinions about CAT-N

Signal
Opinion
Expert
COMMENT
COMMENT
May 24, 2016

Their segments include mining, energy exposure and construction around energy. If you look at all their segments, there is just no good part of the business that is working right now. Have done a fantastic job of managing costs, but it is a very tough environment. The big question is, where are we in the cycle and are we close to a bottom. Expectations are still being reset lower with some caution on the stock. Reported in April and earnings came in slightly below. Revenue was better, but they did cut their profit outlook.

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Caterpillar (CAT-N)
May 24, 2016

Their segments include mining, energy exposure and construction around energy. If you look at all their segments, there is just no good part of the business that is working right now. Have done a fantastic job of managing costs, but it is a very tough environment. The big question is, where are we in the cycle and are we close to a bottom. Expectations are still being reset lower with some caution on the stock. Reported in April and earnings came in slightly below. Revenue was better, but they did cut their profit outlook.

BUY WEAKNESS
BUY WEAKNESS
May 19, 2016

A great company but a chunk of their business is tied to mining. He looked at it and decided he would step in at $60.

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Caterpillar (CAT-N)
May 19, 2016

A great company but a chunk of their business is tied to mining. He looked at it and decided he would step in at $60.

WAIT
WAIT
April 13, 2016

Industrials have broken out and it is very positive right now. The chart has turned, but it is still early in the turn. Dividend yield of about 4%.

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Caterpillar (CAT-N)
April 13, 2016

Industrials have broken out and it is very positive right now. The chart has turned, but it is still early in the turn. Dividend yield of about 4%.

DON'T BUY
DON'T BUY
January 19, 2016

This is going to behave much like emerging markets, and much like the commodity space, and is very close to the epicenter of the problem of the market. Expects it will continue to be under pressure. Even if commodity prices bottom, which he doesn’t think will happen soon, they are likely to remain weak for a long period of time.

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Caterpillar (CAT-N)
January 19, 2016

This is going to behave much like emerging markets, and much like the commodity space, and is very close to the epicenter of the problem of the market. Expects it will continue to be under pressure. Even if commodity prices bottom, which he doesn’t think will happen soon, they are likely to remain weak for a long period of time.

DON'T BUY
DON'T BUY
January 14, 2016

Looks attractive at 13 X earnings, but thinks there will continue to be a slowdown in many parts of the world. Wouldn’t jump into this at this time. Trading well below its 200 day moving average and is below the 50 day moving average as well. Technically there are lower lows and lower highs. Dividend yield of about 4.9%.

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Caterpillar (CAT-N)
January 14, 2016

Looks attractive at 13 X earnings, but thinks there will continue to be a slowdown in many parts of the world. Wouldn’t jump into this at this time. Trading well below its 200 day moving average and is below the 50 day moving average as well. Technically there are lower lows and lower highs. Dividend yield of about 4.9%.

HOLD
HOLD
December 17, 2015

There is no near term catalyst as their end markets are weak. There is also an inventory of used equipment out there. The balance sheet is strong and the yield is attractive and safe. There are other areas of the market that are more attractive.

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Caterpillar (CAT-N)
December 17, 2015

There is no near term catalyst as their end markets are weak. There is also an inventory of used equipment out there. The balance sheet is strong and the yield is attractive and safe. There are other areas of the market that are more attractive.

COMMENT
COMMENT
May 19, 2015

Sold his holdings about 6 months ago, just on valuation. It really comes down to global growth for them. Global growth has been dropping. Great company with great products. He is hoping to pick this up at a lower price.

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Caterpillar (CAT-N)
May 19, 2015

Sold his holdings about 6 months ago, just on valuation. It really comes down to global growth for them. Global growth has been dropping. Great company with great products. He is hoping to pick this up at a lower price.

SELL
SELL
February 27, 2015

Agricultural demand for equipment sales was down quite a bit in 2014. They cut costs to stay profitable, which worked. Year-over-year they were positive for 2014. Coming into 2015, the energy crisis hit, so demand for energy equipment is down. There isn’t a real growth catalyst there. They do business in over 180 countries and 75% of their revenues is global, so they have also suffered from the strengthening US$.

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Caterpillar (CAT-N)
February 27, 2015

Agricultural demand for equipment sales was down quite a bit in 2014. They cut costs to stay profitable, which worked. Year-over-year they were positive for 2014. Coming into 2015, the energy crisis hit, so demand for energy equipment is down. There isn’t a real growth catalyst there. They do business in over 180 countries and 75% of their revenues is global, so they have also suffered from the strengthening US$.

COMMENT
COMMENT
February 27, 2015

Despite some improvements in the construction equipment business, this continues to be hampered by weakness in the mining equipment business. This is one he would be cautious on. Trading at 17X forward earnings with about an 8% long-term growth. This makes it expensive at a 2X PEG ratio.

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Caterpillar (CAT-N)
February 27, 2015

Despite some improvements in the construction equipment business, this continues to be hampered by weakness in the mining equipment business. This is one he would be cautious on. Trading at 17X forward earnings with about an 8% long-term growth. This makes it expensive at a 2X PEG ratio.

COMMENT
COMMENT
February 13, 2015

Industrials tend to have a period of seasonal strength between January all the way through to May. This one is no different. The average gain for that period is about 15%. However, this one is not doing too well. Since we do have a significant low in the US$, and it is going to trend higher over the long term, what you see is the material stocks and the energy stocks tend to underperform over the long-term. This looks like it is struggling right now.

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Caterpillar (CAT-N)
February 13, 2015

Industrials tend to have a period of seasonal strength between January all the way through to May. This one is no different. The average gain for that period is about 15%. However, this one is not doing too well. Since we do have a significant low in the US$, and it is going to trend higher over the long term, what you see is the material stocks and the energy stocks tend to underperform over the long-term. This looks like it is struggling right now.

DON'T BUY
DON'T BUY
February 9, 2015

China has a big role in this one’s prospects. They also are impacted by the general construction industry. He is concerned here. There are so many rigs coming off line. He would be hesitant to invest in this one at this time. HON-N would be his preference.

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Caterpillar (CAT-N)
February 9, 2015

China has a big role in this one’s prospects. They also are impacted by the general construction industry. He is concerned here. There are so many rigs coming off line. He would be hesitant to invest in this one at this time. HON-N would be his preference.

SELL
SELL
January 16, 2015

Where this company goes, depends on China. Last year, with mining equipment sales down, they had to really cut prices to finish the year in the green. In 2015, there are all kinds of declines, especially in the energy space. In terms of their agriculture and equipment sales, he thinks they’re going to continue the need to cost cut to keep revenues up. He can’t see where the growth catalyst will come from.

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Caterpillar (CAT-N)
January 16, 2015

Where this company goes, depends on China. Last year, with mining equipment sales down, they had to really cut prices to finish the year in the green. In 2015, there are all kinds of declines, especially in the energy space. In terms of their agriculture and equipment sales, he thinks they’re going to continue the need to cost cut to keep revenues up. He can’t see where the growth catalyst will come from.

PAST TOP PICK
PAST TOP PICK
October 30, 2014

(Top Pick Oct 30’13, Up 22.60%) They came out with disastrous earnings about a year ago and gapped down. After gapping down, stocks usually get filled back in again.

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Caterpillar (CAT-N)
October 30, 2014

(Top Pick Oct 30’13, Up 22.60%) They came out with disastrous earnings about a year ago and gapped down. After gapping down, stocks usually get filled back in again.

HOLD
HOLD
September 19, 2014

(Market Call Minute.) He is just not bullish on mining right now, which is a big part of their business.

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Caterpillar (CAT-N)
September 19, 2014

(Market Call Minute.) He is just not bullish on mining right now, which is a big part of their business.

COMMENT
COMMENT
September 9, 2014

Very much tied to the global economy. Stock has not done that well. There has been a slowdown in mining which is not good for this company. Some of the regions were over inventoried, so they were not selling. A high quality name. Still a little too early to Buy. If gold does eventually pick up, this company will do fine.

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Caterpillar (CAT-N)
September 9, 2014

Very much tied to the global economy. Stock has not done that well. There has been a slowdown in mining which is not good for this company. Some of the regions were over inventoried, so they were not selling. A high quality name. Still a little too early to Buy. If gold does eventually pick up, this company will do fine.

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