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January 8, 2017

Caterpillar is The PosterChild for OverValued Market (Video)

By EconMatters



We discuss China`s Credit Bubble, Real Estate Bubble, and Non Performing Loans Bubble in relation to CAT; a stock up $30 on a substantial decline in Earning`s 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 Defies Fundamental Business Realities

Today’s Trading
Previous close
93.00
Today’s open
93.45
Day’s range
92.41 - 93.60
Volume
4,023,073
Average volume (3 months)
4,856,842
Market cap
$54.4B
Dividend yield
3.31%
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 ratio
87.0
Price/Sales
0.87
Price/Book
3.66



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Item Reviewed: Caterpillar is The PosterChild for OverValued Market (Video) Rating: 5 Reviewed By: EconMatters