CAT Dead As Chanos Says "Best Short Idea"

Tyler Durden's picture

While Chanos' last year's short on HP has not been a tremendous success (yet), it seems the market is more acquiescent to the famous China bear's short call on CAT (among other things due to its infamous major exposure to China). As we noted in detail most recently first two months ago and then one month ago, things at the industrial company are not going at all well, but Chanos notes some more important concerns:

  • CHANOS: SHORT CATERPILLAR INC.
  • CHANOS: SAYS CATERPILLAR HAS ‘ACCOUNTING ISSUES’ 
  • CHANOS SAYS CATERPILLAR IS TIED TO WRONG PRODUCTS IN WRONG TIME
  • CHANOS: WILL FACE A SERIES OF SUPERCOMMODITY HEADWINDS
  • CHANOS: ACCOUNTING FOR BUCYRUS DEAL MAY HAVE BOOSTED CAT EPS
  • CHANOS: EARNINGS DRIVER FOR CAT MAY HAVE BEEN ONCE IN LIFETIME

For now, CAT is down around 2.2% on the day and while he believes global growth (and CAT's geographic bets) will hurt, it is the accounting for Bucyrus which makes the Enron billionaire most nervous.

 

And as a reminder from a month ago: