Caterpillar to buy back $1B in shares

Caterpillar (CAT +1.3%) agrees to repurchase $1B in stock from Societe Generale (SCGLF.PK).

Caterpillar expects to complete the buyback in September.

The deal brings Caterpillar's total repurchases to $2B in 2013 after it announced a similar $1B buyback in April. That deal was completed in June. (PR)

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Comments (6)
  • chuck lewis
    , contributor
    Comments (436) | Send Message
    Editor The Lewis Letter
    Chaos misled investors by stating the CAT could not afford to repurchase its own stock in his short tirade. This is one way CAT's management can refute this onslaught.
    29 Jul 2013, 10:31 AM Reply Like
  • hannan98
    , contributor
    Comments (391) | Send Message
    maybe, but he will in all likely hood win out on his short. CAT is hanging by the thread mainly because the broader market is going up. Once it reverses (post QE maybe?), CAT is going down. I mean they didn't just miss earnings estimates, they missed it by a huge margin. The economy is not doing great, china is not going great either. CAT management may have tried to prove Chanos wrong, but its a short term move really. I was a buyer of CAT but sold it. I will pick it up later when it goes lower.
    29 Jul 2013, 12:28 PM Reply Like
  • 13761362
    , contributor
    Comments (382) | Send Message
    "cat hanging by a thread." hahahaha. that's good one! (i've had a cat...she loved to hang by a thread actually.) many years ago i advised a guy here not to short harley davidson which he was doing just prior to an earnings report. this was in 2009 and it appeared the "whole world was coming to an end." HOG went up 8 percent the next day and that was the last time i heard from that clown. can CAT go down? sure. are they a totally mismanaged company with no idea what they're doing and no idea "which way forward" only down? hahahahaha. yeah, you short that thing. all they need to say is two words: "defense contractor" and that stock price would double.
    29 Jul 2013, 01:05 PM Reply Like
  • hannan98
    , contributor
    Comments (391) | Send Message
    well, the stock was around 30ish in 2009 or so and has more than doubled and has a nice dividend but there is so much against the firm right now that I think there are better entry points. That's why i sold out of my CAT holdings. I will get in at a later time.
    29 Jul 2013, 02:01 PM Reply Like
  • jesse1999
    , contributor
    Comments (37) | Send Message
    We need a new CEO
    29 Jul 2013, 12:42 PM Reply Like
  • RRocky
    , contributor
    Comments (85) | Send Message
    Is this Buy back to support the share price? That does not sound like a good strategy. I think it would be better to allocate that money to debt reduction as that will reduce interest payout. Or just keep the cash for down cycle.
    29 Jul 2013, 06:36 PM Reply Like
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