CAT is the new magic. Different this time. Up on Bad / Missed earning,, lower revenues, and lowered future estimates. WHATA COUNTRY !!!!!!!!! Maybe CAT can start putting things OFF BALANCE SHEET Like the zero hedge reports about Net Flix. Too the moon Lucy !!!!!!!!!!!!!
This is a dead cat bounce relief rally because the earnings were not a total disaster. Bad but not extremely bad as feared. P/E at 10 so Bugatti buyers think it is a bargain. Both are value traps as they can depreciate a lot more. This is just the start of the earnings skid. IBM, CAT, INTC all not doing very well with MANY companies disappointing on top line if not bottom line too. What do you think will happen to corporate profit and consumer spending once companies start gearing up for Obamacare? Slowly people and businesses are starting to realize that "Affordable" Health Act really means another entitlement for the have nots and more expensive for everyone else.
No sense? Would you not buy a Bugatti Veyron, which goes for $1.7M, at a 30% discount if you had access to the required funds, knowing you could sell the car next month for full price? Same principle in effect with CAT at today's prices.