• 
• See all for Emerging Money
• View Print Version

• Emerging Money
• Emerging Money Commodities
• Emerging Money Construction

Construction and mining equipment giant Caterpillar ( CAT , quote ) was a very different beast at its analyst day in Vegas compared to in 2011.

Last year Caterpillar were cheerleaders for the global mining boom and recovery, after being cautious in 2010 after an apocalyptic 2008-2009. Last year CAT were concerned about capacity and meeting demand.

This year is a different story. Caterpillar is more sanguine, but not saying the world is dead and definitely not calling for the end of China.

With moderate world growth, CAT will focus on being more profitable, much like in 2009.

To do this they have said they will cut R&D, investment, and M&A -- which sounds a lot like BHP ( quote ) on the outlook for their new mining project.

Caterpillar's inventory has been a huge overhang to the stock. Cat dealers in South America and China are the major problem as they are holding off on purchases, although this is turning in Brazil. Our guys on the ground say locals are priming for major infrastructure projects.

CAT sees "better sales growth" in 2014 & 2015 due to "healing" U.S. & European construction, and modest emerging market construction.

Ultimately Caterpillar sees enough global improvement and sufficient economic growth to support growth in the mining and energy industries.

What does all this mean? Simple. Buy China, buy miners, and buy CAT on any major weakness here.

China

• Has major technical buy set ups.
• Golden week next week has historically been met with buying.
• The transfer of power in mid-October is going to grease the rails.
• There were record reverse repos last night to pump up the system.
• Buy China Mobile ( CHL , quote ).

Other miners :

Teck Cominco ( TCK , quote ): copper, metal, coal, gold, molly -- and featuring a 2.6% dividend yield.

Norlisk Nickel ( NILSY , quote ) in Russia.

Tune in to CNBC at 10:20am this morning for the full discussion.

Related International Articles

• 
  Market Wrap for Wednesday, May 22: Stocks Pullback As Bernanke Says Bond Buying Could Slow
  5/22/2013 04:19 PM
• 
  Market Update – Mexico giving ground after 42% move from the lows in June ’12
  5/22/2013 03:44 PM
• 
  Mid-Day Market Update: Dycom Gains On Upbeat Results, CVR Partners Drops
  5/22/2013 12:56 PM