Friday, August 9, 2013

"Chanos's Reading List For Shorting Caterpillar" (CAT)

The stock closed yesterday at $83.96 and in pre-market trade is down another 8/10% at $83.30.
From Forbes:
Jim Chanos, long-time short seller, disclosed earlier this month that he was short Caterpillar (CAT), suggesting commodity-price declines (Cat machines dig some commodities up and prepare land for planting others) and some dodgy accounting on an acquisition make the stock vulnerable.
^DUBS Chart
^DUBS data by YCharts
Since then, Cat shares are down about 6% while the overall market is flat.
CAT Chart
CAT data by YCharts

This follows a long bull market in Cat, as a globalizing economy and rapid development in China has spurred demand for its machines....MORE
See also:
Commodities: Caterpillar At $84 May Only Be Worth $28 (CAT)
"Jim Chanos: Why I'm Short Caterpillar" (CAT)