If homebuilder cancellations are rampant, builders are strapped for cash, and the US housing recession hasn't bottomed yet, I somehow suspect domestic demand for new construction equipment isn't causing front end loaders to sell like hotcakes.
I am bullish long-term because of their international business, but this stock is going to continue getting hammered ST.
Shorting the Daylights out of CAT
Started by
DraggdOut
, Aug 29 2007 11:32 AM
2 replies to this topic
#2
nimblebear
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- Traders-Talk User
- 6,062 posts
Welcome to the Dark Side !
Posted 29 August 2007 - 04:02 PM
I believe a lot of their rev. is from overseas. More than50%. They are booming there. Good luck
OTIS.
#3
DraggdOut
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- Traders-Talk User
- 67 posts
Member
Posted 29 August 2007 - 04:14 PM
I believe a lot of their rev. is from overseas. More than50%. They are booming there. Good luck
Stock retraced it's entire gain today in AH so I am up a 1% levered 5:1. (edit: somebody just bought a big block of shares in AH right after I posted this, so more of today's gain looks like it will survive into tomorrow's trading session. still doesn't invalidate my base case)
Their EMEA pricing is up 3.4%, but their unsold inventory is still up YoY, their profit margin has been squeezed of late, and we definitely have not seen the end of the construction machinery demand slowdown due to a negative commercial construction environment. North American machinery dealer sells have been net negative for a while.
We'll see. I have a mental stop above the neckline. But for the market to go sky high today and CAT to maintain a bearish chart speaks volumes IMHO.
Edited by DraggdOut, 29 August 2007 - 04:15 PM.
