It is likely the mistrust in key management and revolving door of CEO & CFO which are stopping many investing in CAT and not allowing the SP to rise up to a fair valuation purely off the numbers??
I’m a LTH and intend on holding for a long while yet but if I was new to CAT I’d be looking at multiple CR at lower prices and asking is there some internal issues causing all these key people to leave so soon after taking on the role. Now those who were likely at loggerheads with the ex CEO’s and CFO’s are running the company. To add weight to this Barry McNeil (COO) is finishing up at the end of this month. WHY? Outside the companies directors that’s 3 of 6 ‘other key management personnel’ who have left this year.
My understanding of the intricacies around the companies accounting is average at best but it did seem strange that that company only had 11m cash in the bank at years end but 6 weeks later has 21m?? Anyone with a good understanding have any questions regarding this or just take them on their word?
Listening in to the conference call and reading the FY19 results left me confident in the future of CAT and overall is was a very positive result. If it drops much lower I’d consider topping up ONCE AGAIN...but these issues around management leaving and also the length of time it is taking to find a new CEO & CFO have me worried there is something amiss either simply due to disagreements with the directors or worst case there are some dodgy practices going on which these key people want nothing of.
This is all just pure speculation but worth asking ourselves these questions...if it was all roses we wouldn’t be sitting at $1.25.....
All IMO, please DYOR
CAT Price at posting:
$1.25 Sentiment: Hold Disclosure: Held
(20min delay)