We will be presenting a flash conference call reviewing our short thesis on Caterpillar Inc. (CAT) titled "Short CAT - What You Need To Know Now" on Thursday, July 18th at 1:00pm EDT. We have published several pieces outlining our short thesis on CAT. After a decade of being a primary beneficiary of the boom in commodity prices CAT may be in a very vulnerable position.
Detail our short thesis on CAT, why the Company will struggle to meet company targets and street expectations.
- Super-cycle Downside: Resources-related capital spending is likely to decline much more than estimates expect
- Commodity Markets/Emerging Markets: Even if emerging markets rebound, which we do not see, commodity supply remains a major headwind
- Acquisitions: CAT not only overpaid for ERA and Bucyrus, but also may have benefited from the flexibility in purchase accounting
- Receivables Growth and Inventories: High inventories and rapid receivables growth have left CAT with weak free cash flow and other challenges
- Abandon 2015 Targets? That would be fast, since they were established in the fall of 2012
- Valuation: A low-ish multiple typically means peak earnings, not cheap equity
- Toll Free Number:
- Direct Dial Number:
- Conference Code: 428976#
- Materials: CLICK HERE