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Caterpillar - An Earning Report

It was stronger than expected. In a blog I did last week on April 24th here is how the 830 series of Calls were trading that day. The open interest and volume of trading in the Calls at that time was next to nothing. Here is how they traded today on their earnings report news. They more than tripled in price in one day. Only 29 contracts traded on the day! Traders were afraid to shell out the large amount of cash $2,771.00 to be exact, to be in the game. That's just to much money. The return was $7,235.00. That is more than a double. Was I wrong for not recommending them as a purchase? I was saying that Caterpillar was trading at lofty levels and I followed the Puts instead which ended up going sideways for a few days. There is always a bit of nervousness just before earning releases. The game with Caterpillar will continue. Now this. It now looks like it's going to go to $900.00 or even $1,000.00 per share.
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Pension Funds and EV Stocks - A Need To Be Part Of The Action

Pension funds invest in EV stocks. Currently Lucid is 81% owned by institutions and 4% insiders. Rivian is 63% owned by institutions and 12% insiders. It's not the average guy on the street who own these two stocks. What do institutional investors know about stocks in this sector that we don't? Tesla is 44% owned by institutions and 13% by insiders. Workhorse is 33% owned by institutions and 4% insiders. In contrast Polestar is only 4% owned by institutions and 47% by insiders. Lucid and Rivian are both up and running with production output. For this reason they both seem to be gaurishing an inordinate amount of attention. Please now read this. After you finish reading this I will tell you what I think.
It seems to me that institutions are out in the garden patch whimically putting EV stocks into their basket. What a dangerous voyage of discovery. Yet what floats the boat is Tesla which has had a wonderful run. The scary part is that this stock has a P/E ratio of 71:80-1. The boat will continue to float as long as consumers continue go electric. It looks like things are headed in that direction. England for example has the goal to ban the sale of all new petrol and diesel vehicles by 2030. Now for a reality check. Look at how these six EV stocks traded this week. What a scrubbing!
The charging station evolution is just as crazy with pension fund money also following the action. This weeks downward action across the board was abnormal.* A look at this situation one year later. What a mess. Investing in companies before they start to have earnings has proven to be a huge mistake.

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