Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : CAT-Caterpillar -- Ignore unavailable to you. Want to Upgrade?

To: jim A who wrote (37)	11/20/1997 4:52:00 AM
From: Tom Latham	Read Replies (1) \| Respond to of 110

Loaded up @ 47. It may be a month or two but these will be worth 60 soon. You will not find more value on stock price in this market other than buying GE "if" it was 15 dollars cheaper. The analyst will look at this ASIA thing against CAT's earnings one of these days soon and decide how much they have screwed up. That day will get us a gap opening of $5. My opinion only and am playing as such. Tom @ MOSES Trading Inc.

To: jim A who wrote (37)	12/1/1997 1:22:00 PM
From: Tom M	Read Replies (1) \| Respond to of 110

Jim/all, here's some info I researched while evaluating getting into CAT. As of now, I'm deciding to wait quite a while as next year looks significantly slower for CAT than this year's growth. CAT's up 26.46% YTD (@ 47 1/2) and Year ending December's earnings are estimated to be 4.35 which is up 23% from last year. No problem there as the stock value appreciated right in line with the increase in earnings. However, the same source (E*trade) has Year ending Dec '98 with earnings of 4.60, up only 6% from this year, and I believe those estimates were certainly before the Asian impact. If that impacts 6% of their earnings, that brings the whole of next year to net 0 % growth and most likely 0% stock appreciation. Although CAT's current P/E of 11 looks like a good buy considering its 9 - 67 historical range, the Price to Book value of 3.6 is pricey given its 2.4 - 4.7 range. I haven't followed CAT very long, but if its stock moved up 26% on a 23% increase in earnings for the year, I'd expect it to stay flat with 0% earnings increase for next year, or drop a bit to a lower Price/Book while we see what future estimates look like, IMO. You might want to consider picking up some Boeing at dips under $50. regards, Tom