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Guided Tear Sheet – Caterpillar (CAT) – January 2017

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Caterpillar is an interesting company – truly part of the very fabric of the American economy for a very long time. When we started on our analysis of Caterpillar, we expected an easy bearish investment; however, as we delved deeper, we realized that the story was not as simple as famed short seller Jim Chanos makes it out to be.

This course runs through an analysis of Caterpillar (CAT) as a capstone to the research we published on the company.

The lessons take you through a step-by-step process of:

  • Understanding the company
  • Collecting important data
  • Analyzing and forecasting valuation driver best- and worst-cases
  • Assessing future growth
  • Understanding the option market’s assessment of the future price of the stock
  • Structuring an option investment
  • Planning a sensible asset allocation for a levered investment

Members are welcome to work through these lessons at their leisure and ask questions during one of the Framework Investing Office Hour sessions or electronically!


Information provided by Framework Investing, LLC, should not be used as  investment advice.  Framework Investing, LLC does not act in the  capacity of a Registered Investment Advisor.  For investment advice geared towards your specific needs, we  encourage you to contact your financial planner or advisor.

Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Seminars and reports are provided to you for educational purposes only. No information presented constitutes a recommendation to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities. Framework Investing, LLC does not offer or provide any opinion regarding the nature, potential, value, suitability or profitability of any particular investment or investment strategy, and you are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances, investment objections, risk tolerance and liquidity needs.