CAT

I know so many people are positive on this stock.  BUt,  one of the reasons this market is falling is the housing market is soft.  If the housing market is soft, then CAT will be weak as well.  THese machines are used in construction.   I just don't understand why so many people are so positive on this stock.  I think it takes a huge hit this summer

Thanks walls

 

I bought some puts on Cat on thursday.  IF this market continues to fall this stock will fall hard.  THis stock has limited near term upside potential considering the housing slow down.  A lot of the machines Cat sells are involved in construction. IF construction slows so does Cat.   And we all know construction is slowing.   

Just driving around and paying attention I notice that those bulldozers, backhoes, and all those yellow construction machines for that matter are not only CAT anymore.  Used to seem like they always were. 

My colleagues and I have been exporting bachoes, bulldozers, and cement trucks from Japan for a couple of years now. Second hand machinery/vehicles are dirt cheap. In addition farm equipment and "kei vehicles" including tractors, tillers, harvesters and pickup trucks are selling like hotcakes. Ford f-series trucks etc just cost too much to fill up these days.