Replies to post #76450 on Biotech Values

[corpstrat]

OT CAT Stimulus jbog - the silly tax rebates and giveaways on corporate taxes are indeed wasted - will result in little to no added spending - so CAT's business will not benefit from them. And yes there's plenty of useful infrastructure work this country could do that dwarfs the stimulus spend. Last week they trumpeted 0.25 bn to California for some infrastructure - was it high-speed rail? For context in my home town of Atlanta - pop 450,000 - we have a $4bn sewer rehab program. $.025 bn is a rounding error for a place with a 30mm pop, in other words.

I'm amazed CAT expects a US house building upturn later this year. They may be right, but the housing market needs more stock like a hole in the head. Dead CAT bounce, perhaps? (Sorry, couldn't help myself)

[DewDiligence]

[OT] CAT raises guidance without raising its guidance:

Last week, CAT’s CEO, Jim Owens, said business is really, really bad and is probably going to get worse before it gets better (#msg-37261386).

Then, last night, Owens said that sales of excavators to China are back to their peak levels, causing CAT shares to rise 6% today. What gives?

I think this apparent flip-flop is CAT’s backdoor way of raising guidance without being on the hook for meeting the (slightly) improved outlook.