what you wanted to know about cyclic stocks but were afraid to ask

[Southie]

Re: what you wanted to know about cyclic stocks but were afraid to ask

@Southie

Just as the above report was filed, CAT announced share buybacks worth I think 1 billion dollars. This is on top of the same amount it spent buying buck shares in last 12 months. Investors probably rewarded it today.

But buying back shares in the 110-88 $ range? Tauba hai!

In 2013, construction spending fell. So CAT took a beating AFTER the buybacks. In 2014 construction rebounded. And CAT rebounded right along.

Guess which sector is suffering now?