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Abbott Laboratories Message Board

richoncat 42 posts  |  Last Activity: Jan 26, 2015 10:31 AM Member since: Nov 24, 2006
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  • Reply to

    Sales to Users down 12%

    by richoncat Jan 26, 2015 10:17 AM
    richoncat richoncat Jan 26, 2015 10:31 AM Flag

    ... less than $50. Tomorrow's earning call will be interesting.

    Sentiment: Hold

  • Worldwide Sales to Users for rolling three month period ending December down 12%. Ouch. That's with the Oil and Gas sector up 25%. You know that can't last with oil

    Sentiment: Hold

  • richoncat richoncat Jan 17, 2015 10:58 AM Flag

    They moved cylinders to Sumter because they needed the space to expand truck strut production. Yes CNC machines are incredible but micron level tolerances are controlled by tooling. It's not just a matter of pressing a button and watching the machine work. Anybody that thinks manufacturing cylinders is more complex than pumps and valves obviously hasn't ever made either.

    Sentiment: Hold

  • richoncat richoncat Jan 16, 2015 7:33 PM Flag

    The main objective is to close the Joliet Plant. That's been in the works for 15 years. But the decision to send it to Mexico is just chasing the illusion of US labor cost reductions. Wait until they factor in all the line down quality issues this is going to cause. Cat will be luck to ship anything once this is done.

    Hasn't management learned anything from their doomed China sourcing experience. Yeah it works fine for a year or so until all the CAT support personnel leave. Then short cuts start, process control disappears and quality goes right down the tubes. I suggest this will end in disaster. Anybody that has ever produced components with these kinds of tolerances will tell you the Monterey Plant is not the right place to try to make these parts.

    I'm not saying that it can't be done in a stand alone facility in Mexico designed specifically to machine tight tolerance parts. But there is a world of difference between welding structures and machining micron level components.

    They'd better have an outstanding training department. "Do you know how many microns there are in a millimeter? Oh there must be millions of them they're really tiny."

    Sentiment: Hold

  • richoncat richoncat Jan 16, 2015 3:33 PM Flag

    This announcement has nothing to do with current politics. It has been a long time coming. Both the lease on the property and the IAM contract expire in 2018. It's over. Last person out please turn off the lights. This action was guaranteed as soon as the union walked in 2012. All the good will developed over the years between the IAM and CAT was toast. Management's heavy handedness and the union's intransigence. What are these people thinking? Ship the rough casting from midwest foundries to Mexico. Machine and assemble. Ship back to midwest assembly plants. I hope fuel prices stay low forever because these components are going to have a bunch of miles on them before they ever go to work. What they don't appreciate is just how difficult these components are to manufacture. Making pumps and valves are several orders of magnitude more difficult than cylinders and tanks. Tolerances measured in microns. Watch the warranty go through the roof. This move could cripple CAT. It's a shame.

    Sentiment: Hold

  • Reply to

    Cat.Layoff....

    by ray839 Jan 8, 2015 4:10 PM
    richoncat richoncat Jan 9, 2015 2:11 PM Flag

    "The best reply is no reply".

    Sentiment: Hold

  • Reply to

    Cat.Layoff....

    by ray839 Jan 8, 2015 4:10 PM
    richoncat richoncat Jan 9, 2015 11:39 AM Flag

    Maybesew, don't take it personally. Mr Friendly is a fruitcake. He'll write anything. The best reply is no reply. The layoff language in the contract is clear. It has nothing to do with work performance or personal vices. Strictly seniority and job code history. It may be a little different for contract workers as they have no union contract.

    Sentiment: Hold

  • Reply to

    Market Direction into Earnings Season

    by richoncat Jan 6, 2015 10:59 AM
    richoncat richoncat Jan 6, 2015 3:13 PM Flag

    There's the cynical Toothy we all know and don't love. Not sure what asking what the Dow will be at the end of Feb has to do with Politicians being on the take. But in your mind it's all related right? There are no honest folks and everybody is crooked. Including you. I guess I'm not going to get an answer to my question. Not sure why I keep returning and expecting you to be different. So adios again. Back to solitary so you can talk to yourself in private.

    Sentiment: Hold

  • Reply to

    Market Direction into Earnings Season

    by richoncat Jan 6, 2015 10:59 AM
    richoncat richoncat Jan 6, 2015 1:39 PM Flag

    Well I've got to be honest, I don't have a clue what he's hinting at but at least it was a straightforward answer with no BS. BTW nobody asked what he was doing I just asked where the Dow will be in two months. I think he's suggesting it will be lower due to the depression we're in?

    Sentiment: Hold

  • Reply to

    Market Direction into Earnings Season

    by richoncat Jan 6, 2015 10:59 AM
    richoncat richoncat Jan 6, 2015 11:23 AM Flag

    Perhaps he'll offer something useful, rather than strictly sarcasm and cynical opinions. I doubt it but we'll watch for it. Looking over the past couple weeks it appears that no one replies to most of what he/she has to say. Mr. Friendly has nothing better to do but other than that he still just pretty talks to himself.

    Sentiment: Hold

  • Well sports fans,that was a pretty significant down draft to start the year. Nothing happened last Friday as the decision makers were still on holiday. This year is starting out much like last year but look how that turned out. :-). The near term question is what do we think will happen as we enter Q4 reporting season. Q4 GDP probably hit a home run following the Q3 blow out. Weather isn't the story this year. Europe is grabbing the headlines but I don't think they'll have a significant influence on most US businesses. CAT has a big exposure to Europe but it's been pretty weak for a while. Let's hear what folks have to say about Dow 30 level at the end of February. I'll put my guess in at 18,300. I think Q4 results will exceed expectations. JMHO. I think I'll take Toothy off IGNORE just to see what gibberish she has to offer. Smile.

    Sentiment: Hold

  • Reply to

    Cat back to $75

    by blackmonday1987 Jan 5, 2015 9:54 PM
    richoncat richoncat Jan 5, 2015 10:25 PM Flag

    For the umpteenth time, almost all of CAT's debt is related to CAT Financial. They borrow at their AA rating of 1-2% and lend it at a commercial rate of 5-6%. CAT Financial has never lost money since their inception. Every year they return several hundred million dollars to the parent. $530M in 2013, $428M through 3 quarters in '14. Give me a 4-5% margin on every dollar I could lend and I'd borrow my way to riches. Loan losses are historically minimal. CAT's problem is all related to a weak Europe which is slowing down China and emerging markets big time. The US is doing fine, 3+% GDP growth for '15 but 70% of CAT's revenues come from overseas. CAT's profit margins on US sales are the highest in the world but it's tough to make up for EAME and Asia Pacific weakness. When Europe recovers we'll see CAT's results explode. In the mean time we just need to be patient.

    Sentiment: Hold

  • Reply to

    Where is RICHONCAT ?

    by kored35 Jan 5, 2015 12:52 PM
    richoncat richoncat Jan 5, 2015 3:42 PM Flag

    With only a hint of sarcasm. Well done.

    Sentiment: Hold

  • Reply to

    Where is RICHONCAT ?

    by kored35 Jan 5, 2015 12:52 PM
    richoncat richoncat Jan 5, 2015 2:42 PM Flag

    I'm here. Just putting some cash to work. Funding my kid's Roth IRAs and buying the dip.

    Sentiment: Hold

  • richoncat by richoncat Dec 23, 2014 9:35 AM Flag

    Third quarter final GDP number; 5%. Dow over 18,000. Unemployment trending down. Oil prices slashed. It's all bad. If we're not careful we could see dozens of new market highs in 2015. Depressing isn't it? Smile.

    Sentiment: Hold

  • Reply to

    The Feds Conundrum

    by richoncat Dec 17, 2014 5:37 PM
    richoncat richoncat Dec 18, 2014 6:06 PM Flag

    Thumbs up. I'll buy that logic. My initial question is however does the FED move at all if the rest of the world is still stuck in the mud? My point about the 8 meetings next year is simply to point out they'll have to move in bigger steps the longer they wait or they'll be well behind the curve. I don't think you'll see any dampening of the economy until they get to 3-5%. That's a lot of small increments for fewer big ones. Duh!

    Sentiment: Hold

  • richoncat richoncat Dec 18, 2014 12:16 PM Flag

    Huh? CAT got out of the on highway Truck engine business years ago. They announced in 2008 that they wouldn't produce a '10 compliant engine. How is that relevant now? They never made any money on those engines they sold to Freightliner and Peterbuilt anyway. Cummins and Volvo own that business now. Mining in Asia and Latin America are still the weak areas. Europe starting to show some life. North America is carrying the load.

    Sentiment: Hold

  • Reply to

    The Feds Conundrum

    by richoncat Dec 17, 2014 5:37 PM
    richoncat richoncat Dec 18, 2014 8:55 AM Flag

    I agree that the Fed is usually behind the curve when it comes to raising rates. But at what level do interest rates start to actually quell inflation? If they were to start in January with a 0.5% increase and matched that in the 8 meetings scheduled through next year, that would leave us at 4.0% at year end. I don't expect them to start that early nor do I expect them to raise rates at every meeting. If they did and we get to 4%, that's still a historically low rate. So we're well into '16 before the Fed actions become effective. Maybe they'll delay any action and then hit the brakes hard with 1-2% increases per meeting mid year. If they do that I'd expect and nasty reaction in the market. Interesting dilemma.

    Sentiment: Hold

  • richoncat by richoncat Dec 17, 2014 5:37 PM Flag

    Finally something interesting about the Fed's long held low interest rate issue. Now they have to wrestle with the conditions in which the US economy is continuing to gain serious momentum and the Fed's classical response would be to start cautiously raising interest rates to keep the threat of higher inflation in check. But, they're faced with recessionary conditions in Europe and Japan, stagnant growth in China and the implosion of counties with oil based economies. If the Fed raises rates does it make it more difficult for the weaker economies to recover, thus suppressing US growth as well? If they postpone rate increases do they run the risk of higher than desirable inflation? Oh my, what is a Fed governor to do. It'll be interesting to watch this play out over the next couple years.

    Sentiment: Hold

  • Reply to

    Shorted Caterpillar

    by rjjones11 Nov 1, 2014 6:47 AM
    richoncat richoncat Dec 10, 2014 5:59 PM Flag

    Got to give Mr. RJ Jones his props. I sure didn't expect to see these options in the money before expiration. I encouraged him to close his position before it expired worthless. I hope he stuck to his guns. These are worth $2.71 tonight. Not a bad return in 7 weeks. Well done Mr. Jones.

    Sentiment: Hold

ABT
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