The only problem I see with CAT, and perhaps this is where the...

The only problem I see with CAT, and perhaps this is where the market is re-rating it, is that the sports and wearables industry is constantly evolving. As a result, new technology is continually being developed which could have the potential to erode CAT's current competitive advantage.

CAT's management have thus far had the intelligence and foresight to see these developments and quickly acquire them. To the point where we're now no longer just an elite wearable tracker company, but we've also got video analytic capabilities, amazing data aggregation and reporting, and a burgeoning consumer product.

However, if more potentially disruptive technology is developed then CAT will have to keep deciding whether to acquire the technology and integrate, or somehow defend against the competitive threat. Its almost like facebook in this regard - they first beat off MySpace and Beibo, then as new social sites/apps popped up they had to decide whether to acquire (instagram / whatsapp / oculus) or defend (snapchat).

This issue and how management deals with it will be key to long term shareholder value. So far I think they've been spot on and so I will continue to back them. If CAT comes through this period of growth intact then there is serious cash cow potential later down the track.