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Caterpillar Is The Posterchild For Overvalued Market

Published 01/09/2017, 12:53 AM
Updated 07/09/2023, 06:31 AM

We discuss China's Credit Bubble, Real Estate Bubble, and Non Performing Loans Bubble in relation to CAT (NYSE:CAT); a stock up $30 on a substantial decline in Earnings and Revenue Growth. We think ultimately CAT will cut their dividend like a lot of E&Ps will also be forced to come to terms with.

Current institutional owners of this stock should be dumping this over-valued stock, not to mention any Retail Holders, as we think CAT is going to retest the $60 a share level over the next two years. CAT could very easily be a $20 stock in five years as the ZIRP Free Money Party comes to an end, taking stocks with declining revenues where they would otherwise trade without Central Bank excesses.

CAT 1 Year Performance

CAT 1-Year Performance Defies Fundamental Business Realities

Today’s Trading

Previous close93.00
Today’s open93.45
Day’s range92.41 - 93.60
Volume4,023,073
Average volume (3 months)4,856,842
Market cap$54.4B
Dividend yield3.31%
Data as of 4:00pm ET, 01/06/2017 Growth & Valuation
Earnings growth (last year)-40.48%
Earnings growth (this year)-29.82%
Earnings growth (next 5 years)+2.20%
Revenue growth (last year)-14.81%
P/E ratio87.0
Price/Sales0.87
Price/Book3.66

China GDP Annual Growth Rate

China Outstanding Yuan Loan Growth

China GDP From Construction

China Total Social Financing

China Newly Built House Prices YoY Change

Chinese Yuan

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