Seeking Alpha

The softening outlook for heavy equipment sales to the mining and construction industries could...

The softening outlook for heavy equipment sales to the mining and construction industries could eventually hit Caterpillar (CAT) and other companies with similar exposure right where it hurts: in the ratings, Fitch says. Muted demand also could temper near-term benefits from CAT's integration of Bucyrus, which was acquired last year.
Comments (1)
  • MexCom
    , contributor
    Comments (3050) | Send Message
     
    I d'no, do I have my hat on straight? I see new projects proposed here in Charlotte. The Levine's are going to re-develop a huge tract in the Uptown area, walking distance to the main business district. Can't imagine how much digging equipment will be needed.

     

    The Republicans are campaigning on canning public works projects such as the expansion of the light rail infrastructure saying we need to build more roads. So it makes no difference who wins - there will still be a lot of digging going on.

     

    The price of metals are going up. The higher the price the more economically feasible it is to go after the more marginal deposits of the ore. These require more digging than the previous mines. Old mines and tailings are being reworked to deploy more modern refining techniques. Whole mountains are being moved and reworked.

     

    High fuel prices makes for higher demand for more efficient equipment. And to get more oil developing the infrastructure to get it out from the newer discoveries in North Dakota requires construction of pipelines and roads.

     

    As I finish typing here, I’m tilting back my hat and sighing with relief that while the softies don't look beyond the tape and the newspaper, I'm sitting pretty watching it all happen where the action is.
    27 Sep 2012, 08:21 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|