Jim Chanos Is Still Bearish On Caterpillar
He said that he took a short position in the stock in 2012 when it traded in high 80s and although he got the fundamentals right the stock is trading basically flat. At the time when he initiated the position, estimates for adjusted earnings for 2016 and 2017 were $15 per share and $18 per share respectively. The current estimates are roughly $3.50 and $3.60.
Chanos added that he still holds short position because he hasn't seen any evidence of the change in fundamentals. The overcapacity in mining equipment and construction equipment is serious. He has also emphasized that the great China real estate bubble and debt bubble have not happened yet.
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