In 2008, when CAT was trading in the low 80's, people refused to sell,feeling it would go higher. They were burned. In 2009, when CAT was trading in the low 20's, people refused to buy, feeling it would go lower. They were burned. Now that CAT's gone up nearly forty points, are we not closer to to the situation that existed in 2008? I think we are. Be very careful here if you're long.
Well buckeye, it does seem that when the stock was 86 w/product sold out for the next year, one would think that it should go higher, now with sales cut in half, one would think it should go lower. But we still have to remember anything over an 1 P/E is speculation.