Caterpillar Is The Posterchild For Overvalued Market
EconMatters | Jan 09, 2017 12:53AM ET
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.
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