From the Newswires: Caterpillar Exhibit at Bauma China Show is the Largest Display Ever for the Company
Don't they know that China is dead there will never never be another piece of heavy equipment sold in that desert wasteland? Why would they build the largest exhibition display in history if there is no chance of success? Maybe they know something. Ya think?
Every year they are having a mining exhibit in Mongolia.
Right now Japan and South Korea are hungry for fuel of any kind. There are large coal deposits in Mongolia and there is little or no rail system to get the fuel to a seaport. There are also major Molybdenum deposits.
Asia Pacific Investment (Hong Kong) has some of the rights and needs to get the stuff to a seaport, like Vladivostok.
Rio Tinto also is working some pit mines with Komatsu products. Seems to me that this is the place that they should be looking.
Google "Mining Mongolia" for more information.
Cat is always positioning itself for the long term. They will have short term plans in hand in the case of a significant recession or collapse in business, but they are always revising and implementing the long term plan because of the long lead times required for execution. The value of the stock may be cyclical and they are guarded in the near term but they are always thinking and planning for long term growth. Hence that's why China is pretty insignificant relative to results today and is so important for Cat's future. China is where the growth will be in the next 30 years.