There is a good chance of a write-down with the BUC acquisition - otherwise it will be nearly impossible for Cat to report favorably w/o mining making a significant comeback. Cat's gone overweight into mining at exactly the wrong time.
Good move. $6 to $8 stock I think - The FCF is impressive.
...why is this CEO still around? Why are some of the Grp VP's still around? Anyone who's actually been involved in the business of HE sales the last 20yrs would totally see the mining cycle and understand the volatility - None of this is new. Also the CAPEX on China and mining are a huge miss. I'm not sure if you could have more dysfunction at Cat.
After reading in the WSJ the comments of Obama's EPA about coal, I don't see how Bucyrus can reach it's potential - not soon anyhow unfortunately.
The Bucyrus acquisition is looking to be a bust. +$8B for something that isn't even generating much sales...