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Caterpillar Cracks $1,000.00 Per Share. History In The Making.

How did this stock get this high? What happened to the worries last summer that tariffs rising raw material would crush their bottom line? What happened to the worries that management commented on during their last few quarterly profit reports. Now look at Caterpillars five day chart. Caterpillar reached the $1,000.00 per share mark for the very first time. Yesterday the stock had a powerful one day surge upwards. Are some people now thinking that the stock could move even higher?. Think about this. Other stocks have also recently reached this threshold. Let's look at a three year chart on Costco to see what it's stock did after reaching the $1,000.00 dollar level for the very first time. Between January 29th and February 3th in 2024 the stock went from $979.00 to $1,022. Then on February 13th it reached $1,072.00 to only then fall back to $927.00 on March 12th. These are big numbers flying around. Let's move on to Eli Lilly and visit it's "reaching the $1,000....
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LiveWire

My last blog was about Harley Davidson and what I didn't bring into the conservation was their spin off business which is building electric motorcycles. To be honest these bikes are not getting rave reviews. Two complaints are their crippling range and the possible issue of them being more dangerous to drive because they are so quiet. There is also competion from abroad. Last quarter they built only 63 of them and that experience is part of the company expecting to incur a loss of over $115 million this year. If you do the math each bike built cost them over $200,00.00. A $115 million dollar loss vs a profit of $1.3 billion for Harley Davidison. That loss makes a small dent in the overall big picture and in the process of getting going they used other people's money. Nursing this project to life from a business point of view has merit. Covid didn't help anything. LiveWire has to go slow until the product itself evolves to a level they feel proud to put their name on. Investors know this companies pedigree. See it's chart and read this.
Now go back to the previous blog on Harley Davidson. Put this puzzle together anyway you want. Forcasting of 750 units on the low end is still a three fold increase in production levels from where they are at now. Could they turn to be profitable in the next 1,000 days? Maybe. Yes there are options on LiveWire. Here are the Oct20th/2024 Calls with a striking price of 7.5 and 10 dollars. That's as far out as you can go and no one is trying to play them. The bids and asks are to far apart.
Keep in mind the company will continue to lose money all year. What a muddle. There are easlier games to play.

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