For Caterpillar, This Is What The "Second Great Depression" Looks Like
Having repurchased billions of its own stock near the all-time high price (or, to avoid cause-and-effect confusion, leading to all time high prices), Caterpillar recently hit its debt issuance ceiling and as a result is no longer able to sell debt and use the proceeds to buyback stock. The result: CAT stock has recently tumbled to levels last seen in 2011. And judging by its monthly retail sales data it is going much, much lower.
The reason: the second great depression which for industrial bellwether CAT started in December 2012 and has since resulted in 32 consecutive months of declining global retail sales and over a year longer than the decline observed during the great financial crisis, refuses to go away.
What they get for leaving our country to save money!
ReplyDeleteMining and commodities are in the hole and so goes Caterpillar.
ReplyDeleteCAT sells more outside the US than in...shows a global slowdown that has never come back.
ReplyDeleteHere comes Warren Buffett, the bottomfeeder.
ReplyDelete