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 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!


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.....


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

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