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« Weighing the Week Ahead: Will the Fed Disappoint the Markets? | Main | Weighing the Week Ahead: An Economic Turning Point? »

April 25, 2012


High School Diploma

I appreciate your help. You really helped me.


While CAT's growth is undeniable (even in Asia at 33% this quarter!), the balance sheet isn't the best I've seen. Strip out the intangibles and goodwill and you have tangible equity of about $2B with a market cap of $68B. Not good. The debt to cash is over 10x, and the haven't been a cash generator for a long time. In their defense, a lot of that debt is CAT financial, the lending arm, so they are a small bank to customers in essence as well.

So if you are a value investor, you don't have a margin of safety and probably want to wait for better prices. IMHO.

Paul Nunes

Timely article and an enjoyable read Jeff.


Thanks Jeff,

This is all extremely helpful.

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