Cat-astrophe? No, But There Is A Good Case Against Caterpillar Shares
DoctoRx • 48 Comments
DoctoRx • 48 Comments
Thu, Aug. 18, 9:16 AM| Thu, Aug. 18, 9:16 AM | 6 Comments
Fri, Aug. 12, 3:43 AM
- Caterpillar (NYSE:CAT) expects no significant demand growth for its energy and transportation products for the rest of 2016 as oil prices stay weak, Caterpillar's Jim Umpleby told analysts.
- The world's largest manufacturer of heavy equipment is restructuring its businesses as demand has slowed for construction, mining, energy and transportation products since 2012.
- It has slashed 13,900 jobs worldwide since mid-2015, and said last month it planned more cuts.
Tue, Jul. 26, 6:25 PM
- Caterpillar (NYSE:CAT) popped more than 5% in today's trade en route to a 52-week high after reporting better than expected Q2 earnings and saying the worst of the slump in mining equipment sales may be passing.
- “The combination of extra cost reduction and a few more sales hopefully will make the second quarter the worst of the year,” CAT's VP of finance services Mike DeWalt said in today's earnings conference call. “Embedded within our outlook we see it getting a little bit better."
- “Management is very cautious overall but at the same time expressed optimism that they can contain losses” in the mining segment, Edward Jones analyst Matt Arnold tells Bloomberg.
- "We would qualify the tone as realistic vis-à-vis the macro environment with some slight positive incremental data points for the dealers on inquiries for rebuild activity [on the mining side]. On the oil side, CAT has not seen any improvements yet," says National Bank Financial’s Maxim Sytchev.
Tue, Jul. 26, 8:07 AM
- Q2 EPS excluding restructuring costs of $1.09 compares to $1.40 a year ago, on revenue of $10.3B vs. $12.3B a year earlier.
- "Over the past quarter, economic risks have persisted," CEO Doug Oberhelman said. "World economic growth remains subdued and is not sufficient to drive improvement in most of the industries and markets we serve."
- Guidance for 2016: Full-year earnings of $3.55 a share (vs. $3.70 previously), on revenue of $40B-$40.5B (vs. $40B-$42B). Restructuring costs are also expected to increase.
- CAT -1% premarket
- Q2 results
Tue, Jul. 26, 7:32 AM
Mon, Jul. 25, 5:30 PM
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Mon, Jul. 25, 10:15 AM| Mon, Jul. 25, 10:15 AM | 17 Comments
Thu, Jul. 21, 3:52 AM
- Looking to strengthen its core mining equipment unit, Japan's Komatsu (OTCPK:KMTUY) has agreed to buy Joy Global (NYSE:JOY) for $2.9B, amid a fight for market share with industry leader Caterpillar (NYSE:CAT).
- Under the terms of the agreement, Joy stakeholders will receive $28.30 in cash for each outstanding share of common stock held, representing a 20% premium to yesterday's closing price.
- JOY +20% premarket
Fri, Jul. 15, 10:18 AM
- BMO technical analyst Russ Visch likes the following stocks:
- MMM: breaks out of 2-yr range, new target $205.
- AYI: successfully tested breakout at $241 level, next target $313.
- CAT: “lots of positive developments” including beginnings of a bearish-to-bullish reversal; rally above $81 would signal uptrend resuming with target of $105.
- EMR: successful retest of recent breakout, rally above $56.75 would open new target of $65.50.
- GE: breaks out of triangle pattern, next target $37, implies nearly 15% gain.
- TYC: has to breakout above $44 resistance, that would open new target of $48.
- UNP: in bearish-to-bullish reversal, new long-term uptrend underway, next target $113, implies 23% gain.
- UPS: to challenge all-time high at $114.40, breakout would be “extremely bullish” with new target $140.
- Also likes: FAST, FLR, JEC, MAS, PH, UTX, VRSK
Fri, Jul. 15, 10:02 AM
- Thomas Lee from Fundstrat Market & Equity Research ("our research process combines both top-down strategy and bottoms-up fundamental views, to develop a roadmap of practical and useful investment insights for our clients") identifies 15 stocks that meet his criteria for his current “highest conviction” strategies, which he calls “laggards become leaders” and “stocks are the new bonds.”
- The following stocks are in 1 of 16 groups that have lagged in the bull market (laggards), and have dividend yield greater than the their long-term bond yield (stocks are the new bonds): APD, CAT, CSCO, CVX, HP, IBM, OXY, PCAR, PG, PX, RL, SLB, T, VZ, XOM.
Mon, Jun. 20, 9:37 AM| Mon, Jun. 20, 9:37 AM | 8 Comments
Wed, Jun. 8, 1:22 PM
Mon, May 23, 12:47 PM
- It's too soon to be bullish on metals and mining stocks, Axiom Capital's Gordon Johnson says, as he thinks the Fed’s hawkish commentary last week will trigger another leg down for many global metals, mining and mining equipment stocks.
- Johnson sees the most pressure on the group coming from China, where he predicts significant further devaluation of the yuan and a softening in property prices in coming months; Johnson says April’s numbers were mostly positive on a Y/Y and M/M basis but that they were more mixed than in previous months.
- Axiom maintains Sell ratings on Caterpillar (CAT +1.1%), Joy Global (JOY +1.3%), US Steel (X +5%), Cliffs Natural Resources (CLF +6.3%), Rio Tinto (RIO -0.1%), United Rentals (URI -0.1%), GATX (GMT +0.9%) and Trinity Industries (TRN +0.3%).
Thu, May 19, 9:20 AM| Thu, May 19, 9:20 AM | 8 Comments
Thu, May 12, 7:40 AM
- Caterpillar (NYSE:CAT) CEO Doug Oberhelman was in Havana for the past couple of days meeting with government ministers, and says he talked about a number of projects.
- "I think the most interesting one in the near term would be the Mariel harbor ... making an efficient modern harbor that competes with others around the world."
- Once the embargo is lifted, says Oberhelman, Caterpillar is ready to move quickly to sell there, just as it has in other emerging markets. It's already named an official dealer for the country - privately-held Rimco, based in Puerto Rico.
Wed, May 4, 5:27 PM
- Caterpillar (CAT -2.8%) has slipped another 1.8% in the past few minutes as Greenlight Capital's David Einhorn says he has a short position.
- Einhorn is speaking at the Ira Sohn conference.
- The company will bottom in 2018 at $2 EPS, Einhorn says, and shares will be cut in half.
- Analyst consensus is that Caterpillar will log EPS of $3.94 in 2018 (and $3.55 for 2017).
- Now read Caterpillar: It's Time To Sell This Stock »
Caterpillar, Inc. is engaged in the manufacturing of construction & mining equipment, diesel & natural gas engines, industrial gas turbines and diesel-electric locomotives. It provides technology for construction, transportation, mining, forestry, energy, logistics, electronics, financing and... More
Sector: Industrial Goods
Industry: Farm & Construction Machinery
Country: United States