I should have been able to enter this trade yesterday with the market pullback but I too late to jump in and by the time I did, I was unable to get the price I wanted. Today however my offer was filled. Caterpillar Stock trades on New York under the symbol CAT.
Caterpillar Stock is under pressure and pushing against the Lower Bollinger Band as it struggles to retain the $100 valuation level. At $100, the stock is reasonably valued with a PE of 16.6 times Price to Earnings. Book value of Caterpillar Stock is $32.63 and cash flow is $10.93. Price to cash flow then is a very respectable 8.8 times. The stock though has not been performing lately as investors worry about a possible global outlook which if it is slowing will mean lower revenue and lower profits for Caterpillar Stock. With a dividend of $2.80 I have been trading against CAT Stock throughout this year but only during periods of dips back to $100 and then prior to April when the stock was climbing back.
Using the Color Code System which I developed years ago, Caterpillar Stock is set to provide more profits for my overall portfolio. Let’s take a look at my next trade in Caterpillar Stock.
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