Replies to post #10778 on The Rising Influence of Rising Affluence

[OakesCS]

Yuppers. It hits my family from 2 sides. I'm in the oil biz and one of my brothers works for CAT.

[DewDiligence]

The bull case for CAT, such as it is:

http://www.thestreet.com/story/13299032/6/caterpillar-s-4-4-dividend-yield-looks-attractive.html

Unlike the author of this write-up, I would not assume CAT’s dividend is safe from a cut, nor do I think that’s the primary issue in deciding whether to buy.

[DewDiligence]

CAT slashes 2015 guidance again:

http://www.wsj.com/articles/caterpillar-slashes-outlook-1445515375

Caterpillar Inc., struggling with weak demand for equipment used in mining and oil drilling, sharply cut its forecast for full-year earnings and reaffirmed its sales would fall in 2016 for a fourth consecutive year.

…Caterpillar now projects full-year earnings per share of about $3.70. That is down $1 from the forecast three months ago and less than half the peak of $8.71 in 2012. It earned $5.88 a share in 2014.

Sales this year are expected to decline about 13% to nearly $48 billion and fall another 5% next year…

As previously noted, 2016 will be the first time in the company’s 90-year history that it records declining sales in four consecutive years.