Discussion in 'Stock Market' started by usmbtech, Jan 28, 2009.
What are you thoughts on Caterpillar, do you think its a good long term buy?
FYI - It just got downgraded by someone today from buy to hold, but I rarely give much credence to that stuff any more. For an example, just look at how B of A's recommendation on CAT went from hold to buy in June of 06 when it fell into the 60s and then from buy to hold in the end of 08 when it was in the 30s.
Sometimes, they tell you to buy when they want you to buy their shares! And then they tell you to sell when they want to buy your shares from you! Or someone makes you skittish by downgrading from buy to hold, like today.
I say, if it's worth holding then of course it's worth buying when at it's lowest price.
Also, I just read....Cramer says BUY - BUY - BUY!
Cramer's Stop Trading! 6 Quick Earnings Picks (1/27/09) -- Seeking Alpha
There are better "trades" out there, but I think it's a solid long term investment.
well lets see.....when all the various state governments put all their road and bridges and tunnels on hold.....the wiped out the need for heavy construction equipment.....the stock tanked and caterpillar laid off a bunch of people....
now obama is abot to pass out millions to the sates to start up all those projects......
hmmmmmmmmmmm.......i wonder what will happen then....
Exactly, the stimulus package and the infrastructure bill will be a CATalyst!
Yep!! BUY!! BUY!!! BUY!!!!
SELL SELL SELL if you need money now! New home construction has nowhere to go but down from here since we can't fill the homes that are already built. New construction projects around the country that would require a caterpillar are plummeting. The only reason you should hold onto this company is if you don't need cash in the next 2-3 years and you want it to really rise up in value, which it will do when the economy rebounds. I would go so far to say that we may be taking such drastic action that we could face a housing shortage in less than a decade from now.
Wow, down to $31.16, can't seem to win with this one
I've been keeping an eye on the volume. Prior to the earnings announcement in January, the average daily volume was around 13 million. That day it purged downward and broke through it's 52 week low with volume of 47 million. In the following days it snuck below $30 per share but the volume was less than the prior breakthrough. I see that as a good sign. In the past few weeks the price has remained flat and the volume has died down and returned to it's normal lower level. I think this is a bullish sign. If you see the price start to move up and the volume stays flat, that means it's not real, it doesn't have conviction. So, this is what I watch for when I'm deciding what to do next. I like the way the price has help up and I'm looking for a catalyst to take it up with real volume.
I am holding it in my retirement account so I am willing to be patient.
CAT: Summary for CATERPILLAR INC - Yahoo! Finance
Take a look out there at how much used equipment has already flooded the market before you decide. Even the larger construction companies have been buying used equipment to finish up some leftover contract road projects that were on the books prior the crunch.
Weird, Val----I look at women sorta the same way you look at stocks !
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