Caterpillar, Inc. (CAT)

Although the economy isn't the greatest, there will always be the need for heavy machinery. The company my husband works for is always buying new 988s, wagons, boulder breakers, etc. The machinery may be spendy, but it's definitely worth it's value!

allergic to cats

With the rising need of crops and food across the globe, CAT is well positioned to take advantage of the international demand for ag equipment. I think that today's downgrade of CAT by Wachovia and CSFB is a great time to pick up a few shares on the cheap. CAT is an export play that will perform well while the dollar is in the cellar. This will not change fundamentally until the Fed raises its funds rate again and thus causes the dollar to strengthen.

Caterpillar, Inc. continues to make many of the large diesel engines that power commercial ships. Their construction segment is always strong and a huge boon to their overseas markets. Expect this one to be a strong performer as growth continues in foreign industrial markets.

What can I say about CAT? I like yellow iron. It old industry and doesn't strike out much since the current building boom started, and has a few more years left in it, or until the boom gives out. Till then I keep reinvesting dividend and taking the modest gains in stock price. Its a steady hitter always getting on base and advancing around the diamond.

This is one tired bear. I like CAT, well positioned internationally with established and distribution and moat. They run a tight ship and will have the ability to adapt to changing markets. Their offshore division should continue to lead the way with new rig construction. This is a long term buy and hold with further downside risk, but should outperform the S&P 500.

* CAT held its annual analyst presentation on last Thursday and Friday. Although CAT's 07 guidance incorporates a growth rate slowdown for revenues, management continues to believe that the remainder of the decade should see a reacceleration of demand.

* CAT noted that while North American residential and truck end markets look weak in 2007, most other global end markets remain strong. The majority of CAT's end markets and geographies are very strong and by CAT's own admission, the end markets that look to be weak in 2007, truck and residential construction in NA are relatively small overall parts of the company.

* Overall, on the company’s longer-term outlook, CAT believes that growth from 2005-2010 will be above any of the three previous 5 year periods and that the Fed will take down rates again, which will spur higher demand in NA.

* The services business is extremely positive and has a significant potential longer term to help CAT achieve its ultimate goal of becoming a more global, less cyclical and more profitable company but the diversification is clearly not yet helping balance overall cyclical exposures yet.

* CAT reiterated its goal of reaching $50 billion plus of revenues by 2010, which implies a 6% CAGR off the company’s 2007 outlook, while the company expects EPS to grow faster at a CAGR of 15%-20%.

* Management gave numerous reasons for its aggressive outlook. The global economy remains generally favorable, and the CAT’s 2007 outlook represents another year of record results.

* CAT continues to see significant growth opportunities in product categories such as large engines (for oil & gas, marine and electric power applications) and mining equipment. At the same time, having acquired Progress Rail earlier this year, CAT is adding aggressively to its service capabilities, to reduce cyclicality.

* As a result, even though CAT expects 07 to be a year of slower growth, as it trims dealer inventories and struggles with weaker North American residential and truck end markets, management expects that the rest of the decade should show resumed stronger growth.

* CAT also expects global infrastructure investment to continue to increase, driving increased needs for new machines and components.

*The Analysts for Cat got pissed at their 3rd qtr results audio conference, and hammered the execs with what seemed to be childish questions about stuff they should have already known, in any event...the anaylsts got mud on their collective faces for being so "off" on their projections, they went back to their seats, called their big investment friends, and told them to unload Cat in favor of anyone...that is the only sane reason anyone can figure for Cat losing 8 bucks in one day, just after painting a rosy future picture of sales, and announcing record profits, sales, and more.

Near 3 year low P/E of 14. Large caps P/E generally have been decreasing and on a whole are undervalued.

Having had considerable exposure to the construction industry, I've observed a couple of thing about CAT. 1. They build a superior product, even competitors acknowledge this. 2. They have built an incredible network of the highest caliber dealers in the industry. 3. Because of 1 and 2, they have built the deepest, strongest customer loyalty I've ever seen.

For any company who operates mining, excavating or forestry equipment; running CAT equals reducing risk.

Oh, and 4. In nearly every other industrial market area, equipment builders from US and Europe have taken a serious hit since the 80's from competitors from Asia and S. Korea. CAT has held it's own and, in some cases grown it's market share asia.

Class act !

Well-run company with a superior reputation for quality and service. Has customers all over the world and in all types of businesses, limiting impact from slowing US housing market. And shares currently sport a fairly low P/E ratio.

1) Debt. 1.52B total cash, 35.53B total debt (http://finance.yahoo.com/q/ks?s=CAT)

2) Management. Sales/profit estimates coming out of CAT are MUCH HIGHER than wall street estimates. If management has underestimated effects of the downturn, could that mean they are unprepared for it?
http://finance.yahoo.com/q/ae?s=CAT
http://phx.corporate-ir.net/Tearsheet.ashx?c=92466

3) They look cheap on last year's earnings (PE 5.36)... but what about next year? PE 11.85. The year after? 11.72

4) What is their growth based on? Worldwide infrastructure spending and higher commodity prices. You can SPECULATE that this will happen sooner rather than later... but only 30B for infrastructure in the new stimulus package doesn't bode well for CAT. especially if most of these projects dont kick in for a few years.

I'm staying away from heavy machinery for the time being, there are much better places to put money right now

A family member of mine sells cat equipment and there is such a shortage right now that even if the economy does slow there is soo much pent up demand that the valley of the cycle will be smoothed out and hardly noticed

Total thumbs up first class piece of iron,well run company with an excellent service network. The name in earth moving and mining equipment positioned for long term growth and made in the USA

Continued construction spending in China, India, Vietnam, Malaysia, the Gulf states, and many other nations in the early stages of building or upgrading infrastructure. In addition, construction demand in the U.S. is likely to pick up over the next five plus years.

This stock was a great buy at $60. It is still a very good buy now. As a global company, the U.S. economy is no longer the driving force behind Cat's growth that it once was. Of course, perception can create reality, so occasional 'scare news' regarding the U.S. economy provides great buying opportunities with little dips in its price. Cat will then help build China and those in the know will reap the reward.

Although the U.S. housing market has slowed down, i still have faith in Caterpillar. The main reason is because of global growth. China and Japan are growing rrapidly along with many other countries and are continually building. But you can't build without tools...that's where Caterpillar comes in. The wrld will keep growing and Caterpillar machines will help us build.

I think with all the growth and building expected in B.R.I.C. Cat should see strong growth. Its curently trading at a PEG of around 1 with what I think could be a concervative growth rate. Pieomike out!

World's largest construction machinery maker is going to focus on growing in the world's fastest-growing construction market. Sure, so are all of their competitors, but there is room for many players in China, certainly over the next decade. I'm betting on the biggest one.

Every single independent CAT dealership I have seen has been growing at double digit growth rates, and they all source their equipment from CAT. In my opinion, CAT will share in their explosive growth.