re: So in this age of overvalued stocks, name some undervalued ones you see.

I'm lost as well.

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volvagia, you always come in and make some dickhead remark trying to sound wise. Just stop man you're really pretty annoying. It's a message board, chill the frick out. I'm sorry I hurt your butthole with my comments about ETF's and mutual funds being stupid.

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Always? Please show me another example on the MT

Sounds like someone got butthurt by my disagreeing with your recommendations to others to turn their backs on ETFs and funds, but it wasn't me.

I'm also considering DE

I might wait another quarter before you buy CAT.

China’s economy is starting to hit a wall and the slowdown with hurt US industry especially companies like CAT. Just my opinion of course.

I don't know because I haven't looked into it enough but here's a relevant article to help you decide.

Smartphone Prices dropping

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China’s economy is starting to hit a wall and the slowdown with hurt US industry especially companies like CAT. Just my opinion of course.

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Explain China and the effect it will have on CAT. I don't know much about either but am interested

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Smartphone Prices dropping

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They should be, it's not new technology.

No,

:offtoread:

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Explain China and the effect it will have on CAT. I don't know much about either but am interested

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This article does a decent job summing up the affect China will have on CAT and other companies: LINK

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As the world's second-largest economy - and still growing - China is seen as a primary source of revenue growth by the largest U.S. companies. But a country that once boasted double-digit growth is now growing at a more modest 7.5 percent rate, its credit markets are overheated and fears of a housing bubble remain.

The slowing has occurred as major U.S. names garner more revenue from Asia. Among 18 S&P companies with large exposure to China, 12 of them were underperforming the broader S&P 500 .INX index year-to-date, including Yum Brands Inc (YUM.N) and Intel (INTC.O), which noted the slower growth in China as a headwind.

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On Wednesday, hedge fund guru Jim Chanos said he was shorting Caterpillar (CAT.N), sending shares down nearly 2 percent. Chanos has long argued that China's economy is headed for a crash, saying the company is "tied to the wrong products at the wrong part of the cycle." About 25 percent of Caterpillar's revenue comes from the Asia/Pacific region, though it does not break out revenues by country.

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"Caterpillar would say inventories are coming back into line. But your outlook on a stock depends on what implicit growth rate you are expecting from China," he said.

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[quote]Roughly half of Caterpillar's profits are tied to the capital expenditures of global mining companies, he explained. While there's been a general acknowledgement that global mining expenditures will decrease, it won't happen gradually, as most people have predicted, Chanos believes./quote]

China's economy will continue to slow in my opinion which is the same as a growing number of people.

From what I can tell this new leadership is actually willing to let the market work on its own without arbitrary investing to spur growth and delay the inevitable. Take for example last month when the interbank lending got out of control, the central bank only intervened for instituions with the most severe liquidity issues and they did not do this immediately. Restraint like that from the central bank has been extremely rare since 2008. They overspend on infrasturcture and and housing. That shite has to stop. Credit is going to tighten and consequently there will be less investment and manufacturing which will lead to a decrease in commodity prices as well.

Another factor is that local Governments prop up businesses all the time and a lot are in extreme debt. Local politicians are promoted based on their province's growth rates.

Also the leaderships credit policy is going to tighten because China's loan growth rate is something like 20% which is clearly unsustainable with a GDP of 7.5 that I think will be fast approaching 6 before it goes up in the coming years.


Furthermore, China cares more about Social stability than the economy. What really matters here is raising China's average household disposable income because that is what the people of China care about. To do this they will continue to raise wages, which will make China's factories less competitive. The economy needs to be "rebalanced" to a more consumption driven economy than investment driven, and needed to start a few years ago.


Just keep in mind that this is a country where the economic specialists look at the amount of electricity and railroad activity as a better indicator of the economy than the government approved GDP rate. But then again the government started to order the electricity provides to report false numbers...

I know that the US is not immune to certain data manipulations to prop up GDP.

I know this was a lot and I do not claim to be an expert on the Chinese economy. Is all of this already built into the share price of CAT and others? Maybe.

If you want to learn more about the market or China in general I would make this LINK one of your daily visits.

You should take a look at PZE . I bought 100 shares a month ago or so and am already up 25% and their dividend is ahead of me at 3% yield or so according to Yahoo. P/E is sub 6 and their balance sheet is reported tobe clean from bad debt. Argentina os starting to be more friendly to oil exportation too