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Caterpillar (CAT) – A Dog From Here ?

November 4, 2009 12:09 pm

Last night, into the close, we took an initial short position in Caterpillar (CAT). The stock has been in a range now for a few weeks and while metals and material prices have been on the rise, CAT has benefited from the perception that sales of their ground moving equipment will soar. We are still reluctant to believe that the price matches the current or near future fundamentals as the last few quarters earnings reports have not shown anything more than hope for a better tomorrow. (See HERE for more details)

For now, this is susceptible to dollar moves and ultimately commodity prices. The weekly chart shows some key areas of resistance.

(Weekly Chart for Caterpillar – Click to Enlarge)

cat_short

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Disclosure: Horowitz & Company clients may hold positions of securities mentioned as of the date published.
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Written by Andrew Horowitz · Category(s) Short Ideas, Stocks    |  Tags: •   

3 Responses to “Caterpillar (CAT) – A Dog From Here ?”

  1. Rhodrimawr on November 5th, 2009 11:14 pm

    Couldnt agree more Caterpillar has been defying gravity and reality for months – cant go on much longer

  2. Andrew Horowitz on November 6th, 2009 1:19 am

    Seems that we are minority

  3. Rhodrimawr on November 6th, 2009 10:50 am

    I may increase short positions but its so frustrating when reality and fantasy digress so badly – i suppose we should just be grateful that Mr Market keeps on serving them up!

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