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This Is "Why" Caterpillar Is Trading At Two-Year Highs

Tyler Durden's picture




 

Moments ago CAT stock touched 52 week highs, or a level not seen since April 2012. Why? The chart below which shows Caterpillar dealer retail sales by region surely has something to do with it. With global sales sliding again now that the third consecutive dead cat bounce is over, and dumping the most since February of 2013 or 12% from a year ago, when sales had in turned dropped 11% from 2012, driven by a collapse in Asian-Pacific, Latin American and EMEA sales, all of which crashed by more than 20%, we can only assume the company is well on its way to an epic collapse in its top and bottom lines as well.

And since this is nothing short of the bizarro, insane new normal, it is only a matter of time before the crash in retail sales sends the stock to plus infinity.

 

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Wed, 04/23/2014 - 11:05 | 4686543 Squid Viscous
Squid Viscous's picture

global recovery!

Wed, 04/23/2014 - 11:08 | 4686560 Son of Loki
Son of Loki's picture

Looking up that High makes my neck hurt.

Wed, 04/23/2014 - 11:36 | 4686691 I am more equal...
I am more equal than others's picture

 

 

In anticipation of building all the new concentration --- opps --- reeducation camps and mass graves - demand for Cat products are about to increase. 

They are going to have to dig some deep ditches - mass graves - to make the wacko glowbull warming and environmentalist happy (the brainwashed killing those who do not 'believe' in their 'science'.)

Wed, 04/23/2014 - 12:02 | 4686783 TheReplacement
TheReplacement's picture

That seems just as plausible as anything else we're being told.

Tortoise FORWARD!

Wed, 04/23/2014 - 13:31 | 4687127 SamAdams
SamAdams's picture

Cat is part of the triangle club, that's why.... 

Wed, 04/23/2014 - 11:05 | 4686545 rsi1
rsi1's picture

Chanos short covering?

Wed, 04/23/2014 - 11:16 | 4686592 Stoploss
Stoploss's picture

Sounds like time to rotate to the small e&p's.

Wed, 04/23/2014 - 11:06 | 4686550 El Hosel
El Hosel's picture

Bad news is better... Bitchez   Stand on your head and it looks good.

Wed, 04/23/2014 - 11:07 | 4686559 jubber
jubber's picture

wasn#t that the same story for IBM?, the only day it goes down is the day after earnings?

Wed, 04/23/2014 - 11:08 | 4686562 101 years and c...
101 years and counting's picture

who needs sales/earnings growth when you have fed liabilities going parabolic?

Wed, 04/23/2014 - 11:09 | 4686564 hangemhigh77
hangemhigh77's picture

Maybe they can sell them to regular US consumers now.  I mean if women like SUV'S so much imagine how they would LOVE a 120 ton Bulldozer.  They can park it anywhere and no one will fuck with them.  Look for Cat retail sales outlets soon next to the local GM dealer.

Wed, 04/23/2014 - 11:23 | 4686630 Ribeye
Ribeye's picture

don't be silly, it would be impossible to clamber up into a CAT while on the phone, wearing heels, and carrying a non-fat soya latte, 

Wed, 04/23/2014 - 11:38 | 4686696 WhiteWolf
WhiteWolf's picture

Need to modify a D11 dozed with all around bullet proof glass, and use the hydraulic lines for .50 joystick operated guns and rear mounted RPG then go visit local police station.

Wed, 04/23/2014 - 11:48 | 4686731 BandGap
BandGap's picture

Shit, I'd buy one over a GM anything. That is, if I had a fucking job and could afford it.

I guess that's the rub, isn't it?

Wed, 04/23/2014 - 12:11 | 4686815 Rukeysers Ghost
Rukeysers Ghost's picture

I'll bet a new Catapillar isn't designed to kill you like any veriety of GM products sold over the last ten years.

Wed, 04/23/2014 - 11:14 | 4686565 Ralph Spoilsport
Ralph Spoilsport's picture

My nephew has worked as a Cat mechanic for a dealership in Ephrata, PA for 7 years. He got his layoff notice last week. Not only are Cat's sales way off, the repair and maintenance work has dropped drastically.

Wed, 04/23/2014 - 12:34 | 4686904 valley chick
valley chick's picture

+100 for Ephrata...nice area. But do have a question that maybe you can answer.  Is a lot of the equipment rented and maybe lack of jobs is why the lack of service needed on equipment?

Wed, 04/23/2014 - 14:29 | 4687369 Ralph Spoilsport
Ralph Spoilsport's picture

From what he said, there's not much construction going on in that area. Companies that bought or leased from them skip maintenance on idle equipment and some are trying to sell into a market with few buyers.

Wed, 04/23/2014 - 11:11 | 4686568 Stuck on Zero
Stuck on Zero's picture

My Dad told me that ditch digging was the best job in the world because you start at the top.

 

Wed, 04/23/2014 - 11:26 | 4686638 Dr. Engali
Dr. Engali's picture

Please tell me that's an Onion piece and not "real" news. WTF have we devolved into as a society?

Wed, 04/23/2014 - 12:07 | 4686804 TheReplacement
TheReplacement's picture

We've been warning the world for decades about the antics of those dastardly Canuckians.  John Candy was silenced over his role in Canadian Bacon.  Maybe now the Chinese will finally get past their obsession with Japan and help us rid the world of its greatest enemy, America's hat, Canada.

Commence bombing in 3...2...1...

Wed, 04/23/2014 - 12:21 | 4686848 NotApplicable
NotApplicable's picture

I'm having a hard time beliebering he has any fans in China.

In other news, useful idiots are still useful.

Wed, 04/23/2014 - 11:23 | 4686579 Dr. Engali
Dr. Engali's picture

It's trading at a two year high because WWIII is just around the corner, and their services will be needed. It takes a lot of heavy equipment to bury 6.5 billion people.

Wed, 04/23/2014 - 11:13 | 4686580 Cursive
Cursive's picture

Thanks, TD et al, for chronicaling the financial madness of the "developed" world.

Wed, 04/23/2014 - 11:14 | 4686581 ebworthen
ebworthen's picture

CAT .gov bailout coming in 3...2..1...

Wed, 04/23/2014 - 11:14 | 4686583 SoDamnMad
SoDamnMad's picture

Russia will sweep through eastern Ukraine and all the damage will have to be bulldozed. Bullish

Syria will need to be leveled. Bullish

Libya will need a rework. Bullish.

Detroit needs to be leveled. Bullish

Look at all that CAT opportunity for GROWTH

Buy the Stawk

Wed, 04/23/2014 - 11:16 | 4686593 tmosley
tmosley's picture

Hmm, insider buying preceding a buyout?

A Chinese buyout?

Wed, 04/23/2014 - 11:17 | 4686596 digitlman
digitlman's picture

Has it been mentioned that Kubota and Komatsu might also be grabbing more CAT sales becuase they are cheaper?

Wed, 04/23/2014 - 11:17 | 4686597 youngman
youngman's picture

But I bet they bought back a bunch of their own stock.....so the IPS looks good...

Wed, 04/23/2014 - 11:21 | 4686607 Chuck Knoblauch
Chuck Knoblauch's picture

Maybe Israel will buy CAT?

They need the equipment to destroy more Palestinian homes, schools, and hospitals.

Palestinian genocide = CAT profits!

STRONG BUY!!!

Wed, 04/23/2014 - 11:28 | 4686645 NOZZLE
NOZZLE's picture

Paliscum Genocide=Public Service

Wed, 04/23/2014 - 11:31 | 4686664 tmosley
tmosley's picture

The poison of collectivism will one day kill you, my friend.  Perhaps you should try to limit your intake?

Wed, 04/23/2014 - 12:23 | 4686857 NotApplicable
NotApplicable's picture

Perhaps this is more a question of trollish output, rather than intake?

Wed, 04/23/2014 - 12:52 | 4686976 CheapBastard
CheapBastard's picture

Lots of Student Loan money out there "sitting on the sidelines" just dying to buy a new tractor [to impress the gals] when the price comes down.

 

...or maybe not....

Wed, 04/23/2014 - 11:35 | 4686686 ebworthen
ebworthen's picture

Israel will buy Komatsu first, just to mix things up and stir the pot a bit.

Wed, 04/23/2014 - 12:07 | 4686805 TBT or not TBT
TBT or not TBT's picture

Pails do a fine job of destroying productive assets all on their own. The Israelis handed over lots of high tech green houses in Gaza and these were looted and ruined pretty much immediately. If the west stopped GIVING hand to mouth welfare to them the place would be shitty as the worst African basket case inside of six months. Let's let their fucking Arab neighbors take care of them for once. Oh, wait, the Arabs treat them like shit

Wed, 04/23/2014 - 12:13 | 4686820 TheReplacement
TheReplacement's picture

I think most of us taxpayers would be fine with the USGov ending welfare handouts to all parties around the world. 

It is kind of funny.  The progressives, greenies, and bleeding hearts all want us to give aid to this group and that group or all groups.  Then they turn around and complain about pollution and overpopulation as if our global handouts are enabling both of the evils they claim to detest.

Gosh, it's sort of like the Fed printing money leading to wealth disparity while taxes go up to supply the handouts...

I'm sure there is no pattern here.

Wed, 04/23/2014 - 12:14 | 4686825 Chuck Knoblauch
Chuck Knoblauch's picture

The Saphs and Palest lived in peace before the Ass-can-nazis showed up.

Wed, 04/23/2014 - 13:17 | 4687064 ILLILLILLI
ILLILLILLI's picture

What the Zionist wants, the Zionist takes...

Wed, 04/23/2014 - 11:19 | 4686614 Itchy and Scratchy
Itchy and Scratchy's picture

Pending CAT-astrophe!

Wed, 04/23/2014 - 11:20 | 4686620 carbonmutant
carbonmutant's picture

Caterpillar  has been chopping costs to cope with falling demand for mining equipment. In the U.S.,  Caterpillar  over the past year has closed or announced plans to close plants in  Pulaski, Va. ;  Beckley, W.Va. ;  Kilgore, Texas ;  Summerville, S.C. , and  Owatonna, Minn. , as well as one near  Toronto  and another in  Sudbury, Canada .

In early 2013,  Caterpillar  announced plans to eliminate 1,400 jobs at a plant in Gosselies,  Belgium . Last week,  Caterpillar  said it aims to close a plant in Rantigny,  France , that makes equipment for road paving, including compactors, planers and pavers. - Dow Jones News Wires this morning...

Wed, 04/23/2014 - 11:31 | 4686665 booboo
booboo's picture

They would not consider closing the Peoria Illinois pant as it was that plant where Oblahbah had his "mission accomplished" moment on the "recovery"

Wed, 04/23/2014 - 11:37 | 4686693 ebworthen
ebworthen's picture

Sounds like the MBA's have taken over the company.

Remember all that talk of "infrastructure rebuilding"?

Guess that money went somewhere else.

Wed, 04/23/2014 - 12:08 | 4686808 TBT or not TBT
TBT or not TBT's picture

That was shovel ready.

Wed, 04/23/2014 - 12:14 | 4686824 TheReplacement
TheReplacement's picture

Speaking of shovel ready projects, long mass graves.

Wed, 04/23/2014 - 11:23 | 4686626 Jack Sheet
Jack Sheet's picture

...." We are seeing money moving into commodities. Many stocks that have been the leading performers this year are the commodity stocks or commodity-leveraged stocks.

These leading stocks are companies like Deere, Schlumberger, and Caterpillar. These leading commodity franchises have all been showing an outperformance over the general stock market. This stands in contrast to what we saw in 2011. At that time these stocks were falling sharply and dramatically underperforming the market.....

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/4/22_Ax...

Whatever.

Wed, 04/23/2014 - 11:24 | 4686627 Jack Sheet
Jack Sheet's picture

dup due to f***ing ipad keyboard.

Wed, 04/23/2014 - 11:24 | 4686632 Bernoulli
Bernoulli's picture

Thanks for the idea. CAT MAY14 75P looks like a bargain at 0.01 USD...

Let the markets crash!

Wed, 04/23/2014 - 14:15 | 4687312 MountainsRoam
MountainsRoam's picture

I got me a a 100 contract lottery ticket today haha

Wed, 04/23/2014 - 11:28 | 4686642 Chuck Knoblauch
Chuck Knoblauch's picture

CAT equipment will be used to raze the Dome of the Rock in Jerusalem.

Wed, 04/23/2014 - 11:28 | 4686647 goldhedge
goldhedge's picture

Hey The CAT can easily dig itself out of this mess - no problemo ;)

Wed, 04/23/2014 - 11:30 | 4686655 williambanzai7
williambanzai7's picture

Traveling around Thailand, all of the construction equipment looks like CAT but is obviously Chinese.

Wed, 04/23/2014 - 11:50 | 4686740 derek_vineyard
derek_vineyard's picture

Theres CAT then there is anyone/everyone else.  CAT's last decades....the rest are trash.  CAT could build some awesome weapons.  O should have CAT build his war machinery.  They probably already do.  Trouble is.......fewer and fewer can afford quality.

Wed, 04/23/2014 - 12:07 | 4686799 goldhedge
goldhedge's picture

Biggest problem CAT has it is American.  Doesn't matter how great their products are.  China and India have there own manufacturers and their Govs will nudge their own construction companies to buy local.   Especially with the US pivot to asia.

Wed, 04/23/2014 - 12:46 | 4686931 Emergency Ward
Emergency Ward's picture

Isn't there an Israeli modified militarized version of the CAT D9?  Isn't that what the IDF used to crush the life out of unarmed protestor Rachel Corrie?

Wed, 04/23/2014 - 13:35 | 4687149 elegance
elegance's picture

And Darwin prize for her.

Wed, 04/23/2014 - 14:07 | 4687281 Ralph Spoilsport
Ralph Spoilsport's picture

CAT makes the best engines. Chinese diesel engines don't last very long as New Holland has found out with some of their tractors.

Wed, 04/23/2014 - 11:30 | 4686661 Chuck Knoblauch
Chuck Knoblauch's picture

CAT's tax department in Peoria was looking for international tax experts last year.

I wonder what they're up to?

Wed, 04/23/2014 - 11:34 | 4686680 booboo
booboo's picture

No doubt getting advice from the IRS on how to avoid paying and getting a bonus.

Wed, 04/23/2014 - 11:39 | 4686699 Chuck Knoblauch
Chuck Knoblauch's picture

Goodbye Illinois.

Hello Shanghai?

I can't wait to buy pork from Smithfield Foods Shanghai!

I wonder what's going to be in their new line of pork products?

h1n1, anyone???

Wed, 04/23/2014 - 12:12 | 4686819 QQQBall
QQQBall's picture

No kidding. My neighbor offered me a a gyoza yesterday - I opened the noddle part and what was inside looked like alien vomit. Smithfield China - just a matter of time

Wed, 04/23/2014 - 12:25 | 4686859 Chuck Knoblauch
Chuck Knoblauch's picture

I wonder how China disposes of aborted fetuses?

Baby shrip, anyone?

The Smithfield Foods Shanghai IPO is coming soon!!!

Wed, 04/23/2014 - 11:37 | 4686687 credo
credo's picture

OT: Why do financial bloggers have such a limited vocabulary to describe anything that is not positive growth: which word set is largely encmopassed by the vocabulary list:  "shocking", "collapse", "epic", or the most popular of all, "massive".  Is it some emotional connection between money/wealth and personal identity which leads to the need to over dramatize?  When anything more than -10% is an "epic collapse" it doesn't leave much rhetorical space to describe a truly impressive event.  Just a pet peeve.

Wed, 04/23/2014 - 12:45 | 4686947 Manipuflation
Manipuflation's picture

That is an interesting statement.  I didn't know that I was a financial blogger considering the price of gold and silver.  Then again, I am not ETFing it either on a stack  You win some and you lose some.  I think many of us simply quit playing the game.  If you want to go Vegas then no one is stopping you from doing so.

You can always go over to SeekingAlpha and pay those douchebags to tell you Zerohedge was wrong.  Philosophically, Zerohedge is correct.  On a long enough time line you will find that out.

What is this crap?

http://seekingalpha.com/article/2151373-no-zero-hedge-the-fed-is-not-making-up-data 

Wed, 04/23/2014 - 11:40 | 4686706 Smiddywesson
Smiddywesson's picture

You guys just don't understand fundamentals.

Bulldozers are needed for crowd control when you're distributing Soylent Green.

 

 

Wed, 04/23/2014 - 11:45 | 4686719 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

Ahh….it's been so long since we've had a down day that I've forgotten about the low-volume, European-close levitation to help a languishing market.

Wed, 04/23/2014 - 11:49 | 4686733 pragmatic hobo
pragmatic hobo's picture

just like ibm, mcd, hd, and many others trading on share-buyback steroid ...

Wed, 04/23/2014 - 11:50 | 4686742 Sovereignbeing
Sovereignbeing's picture

Our town bought a new CAT loader last year. Our highway superintendent came to us last week and told us that CAT is offering an exceptional deal again this year where we can trade in our one year old loader and buy a new 2014 machine for a net out of pocket expense of $6,000. It costs us $8,000 - 9,000 a year to run this machine. The deal sounds good and we will buy the new model. They are desperate to maintain sales goals.

Wed, 04/23/2014 - 11:55 | 4686759 Chuck Knoblauch
Chuck Knoblauch's picture

Why do cunts run corporate tax departments?

Is it because it's the least liked G&A expenditure in the budget?

Just noticing the trend at HQ's around the U.S.

What is popular now at HQ is the black face on proposed legislation.

Deliver it to Congress in a skirt and black face, and you may get a special tax credit.

HA!

Wed, 04/23/2014 - 11:55 | 4686761 FieldingMellish
FieldingMellish's picture

The recovery continues at a blistering pace.

Wed, 04/23/2014 - 11:59 | 4686777 Spungo
Spungo's picture

It'll take a lot of construction equipment to rebuild Poland after it's accidentally bombed by Russia then accidentally bombed by America then accidentally bombed by Poland.

Wed, 04/23/2014 - 12:34 | 4686893 Emergency Ward
Emergency Ward's picture

All financed by US Govt initiated "reconstruction loans".  Fuck the broken window fallacy, let's break another fucking country.....  !! Bullish !! 

Wed, 04/23/2014 - 12:03 | 4686787 Puncher75
Puncher75's picture

Nothing to see here.  Move along!

Wed, 04/23/2014 - 12:15 | 4686830 Rising Sun
Rising Sun's picture

CAT is at $104.  All time high is $111.

 

CAT's stock price would surely be over $1000 if it went bankrupt.

 

It's a beautiful day in the neighborhood, won't you be my neighbor??  Except you Yellen you fucking bitch@!!!!!!!!

Wed, 04/23/2014 - 12:32 | 4686895 Chuck Knoblauch
Chuck Knoblauch's picture

Their pension plan is fucking awesome!

Enjoy it while it lasts, suckers!

HAHAHAHAHA!!!!!!!!!!

Wed, 04/23/2014 - 12:21 | 4686850 Mesquite
Mesquite's picture

Hey- 26% off the 'floor' of 82...

One doesn't get that in a bank..! 

Wed, 04/23/2014 - 12:31 | 4686885 Chuck Knoblauch
Chuck Knoblauch's picture

Tangible property repair regs issued by the IRS are forcing many companies to capitalize more repair and maintenance charges. I'm not going to buy new equipment if I cannot take a current deduction on my tax return for R&M. What idiot at the IRS proposed this POS reg?

Wed, 04/23/2014 - 15:39 | 4687652 toadold
toadold's picture

US manufacturers have been getting the tax shaft on the depreciation of capital goods for decades now and it has just been getting worse.  I remember one company that I worked at briefly that was building  aircraft parts with worn out and obsolete machine tools in the early 1980's.  When asked why, the bean counters said, "The capital needed was too high vs the tax depreciation allowed given the projected life of the current business cycle."

Wed, 04/23/2014 - 12:52 | 4686977 TPTB_r_TBTF
TPTB_r_TBTF's picture

A lot of Cat equipment will be needed to rebuild Europe after the next war.

Bullish!

 

Disclaimer:  been long CAT since the failed Syrian War.  Guess my timing was off a bit...

Wed, 04/23/2014 - 14:32 | 4687379 ali-ali-al-qomfri
ali-ali-al-qomfri's picture

Cats have nine lives, right? What number are they on now?

Wed, 04/23/2014 - 15:08 | 4687532 kw2012
kw2012's picture

One thousand nine hundred and eighty four

Wed, 04/23/2014 - 15:45 | 4687694 SharkBit
SharkBit's picture

Awesome!

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