Chillin' out till it needs to be funded
The company with interests in China and US almost equally rode out 2009 and 2010 to shine in the markets as one of the top 10 stocks and after buying Bucyrus took abreather in dull 2011
Of course it’s not a good report for AT&T but the iPhones are still selling like hotcakes and they could be another story in 6 months. Boeing and
Netflix have good reports that we want to check for our bag of goodies for all of you next week.
Caterpillar ran up a 58% rise in earnings from 2010 December. Last time we spoke of them after the Bucyrus pick me up they had just doubled earnings in the September quarter of 2010 too. The retail lifestyle stories have sat well with you and Caterpillar something you missed on our merit charts since we started a talkin’ on non bank earnings in the great big 2009 put down and the consumption strike. US Caterpillar exported $20 bln worth this year. It also created 14,000 jobsint he US and 33000 globally in the last two years when not all infra companies could buck the trend. Forbes has a good big treat of Caterpillar from head to toe
Caterpillar of course is a recession play now in many portfolios but we do believe it is an all season play with a good value for growth fund , Emerging market and special situation managers and consulting careers to anchor.
The street expected less than $2 per share when Caterpillar announced the $2.32 per share $1.55 bln profit, adding all of it to the Topline surprise with a $17.24 bln quarter. Full year profits were just under $ 5bln for a $7.4 earnings kicker
Bloomberg also pointed out ( still waiting for earnings transcripts) that the comppany’s top of the line machinery and power systems division delivered their best ever cash flow of $8 bln. The Bucurus mining purchase also paid in shovels in 2011 esp in China and mining spends are growing 25% this year
BCS and Robert Baird have increased targets ahd of results to $128. We are bought on the share in our cash and options portfolios
2010 Bucyrus/ERA deals http://advantages.us/2010/11/15/the-advantage-zyaada-dealbook-a-chink-in-caterpillar-armour/