[Messman]

After a dip to under $59 last week CAT is showing steady improvement. In just over 4 trading days Caterpillar has grown from under 59 to over 62. I took a small position on CAT when it dipped under 60 and I quickly sold after it hit 61 for some quick cash. But as I see it continue to rise, I wonder if I should jump back in. There could be room for a nice long-term gain here. Analyists predict that CAT should reach 65. But I wonder if it can't go higher. If housing turns around this year, I would think the world's largest manufacturer of construction equipment should see an even larger increase. Early last year(Jan-2006), CAT was trading at over $75 a share and that was in a "housing slump." If housing hits bottom, that spells nothing but good things for CAT. Does anyone else smell 70's for CAT? Thoughts?


Warren Buffet's 2 Rules of Investing:
1) Never lose money 2) Don't break rule 1