Seeking Alpha

Jim Chanos is still short Caterpillar

  • Short-seller Jim Chanos says he’s still betting against Caterpillar (CAT) despite the company’s better than expected Q4 results.
  • “The only reason they beat [estimates] was because of two one-time items," Chanos tells WSJ; "The market saw the earnings beat and got excited, but if you look under the surface, we think they missed estimates for operating earnings excluding one-time gains."
  • CAT CEO Doug Oberhelman says demand from mining customers remains weak but should start to recover this year or next; when down cycles end, demand “tends to come back fairly quickly,” he said in today's earnings call.
  • Chanos says CAT's mixed forecasting record should make investors think twice about taking the company’s outlook at face value, pointing investors to last January’s earnings release.
Comments (7)
  • PChan444
    , contributor
    Comments (514) | Send Message
    Chants lost touch many many moons ago.. Best to ignore chanos... And follow Chan
    27 Jan 2014, 08:57 PM Reply Like
  • Momintn
    , contributor
    Comments (4782) | Send Message
    Too bad Chanos and other shorts have stopped working. How greedy are they anyway? Squeeze the bears on CAT and on IBM too.
    27 Jan 2014, 09:27 PM Reply Like
  • fuzzymc
    , contributor
    Comments (176) | Send Message
    CAT: earnings stink, sales stink,mining stinks the only way this company keeps their share price up is by buying back shares! This can't last long, good short!
    28 Jan 2014, 04:26 AM Reply Like
  • leopardtrader
    , contributor
    Comments (1649) | Send Message
    I say it again..Chanos is wrong footed. CAT will get to $150 this year and even higher afterwards
    28 Jan 2014, 04:45 AM Reply Like
  • combatcorpsmanVN
    , contributor
    Comments (984) | Send Message
    Chanos has rarely been accurate -- in this instance, Chanos committed himself to a short recommendation on $CAT 6 months ago at a Conference podium. He's convinced that the rest of the world is wrong and he is right. Such a position in the face of what the shares are actually doing in price can wreck a career. In Chanos' case, there's not much to wreck.


    Why can't these self-anointed 'gurus' say: "I was wrong" and let it go at that. One more reason why WS pundits are toxic in many cases to the small investor that relies on their insistence that WS knows it all.
    28 Jan 2014, 02:51 PM Reply Like
  • onechan
    , contributor
    Comments (2) | Send Message
    I am a long term buyer of Cat. So it's good that Chanos continues to make his predication about Cat and have people shorting Cat. I can buy Cat at a cheaper price for long term growth.
    1 Feb 2014, 01:19 PM Reply Like
  • onechan
    , contributor
    Comments (2) | Send Message
    I have been buying Cat for long term growth. So please Mr Chanos would you continue to make your prediction about Cat and why everyone should short Cat. This is good for me as I can buy Cat at a cheaper price..
    1 Feb 2014, 01:19 PM Reply Like
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