Caterpillar is The PosterChild for OverValued Market (Video)

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