BLASPHEMY: Einhorn Says to Short $CAT and to Go Long $GM

David Einhorn announced during his Sohn presentation that Caterpillar isn’t being priced for trough earnings. That much is utter horseshit, at 22x. The company is exposed to a deleterious mining environment that is bound to take its toll on the world’s largest miner. Moreover, he believes the stock will bottom in 2018, following a cataclysmic share price drop of course.

On the long side, he likes GM because it’s trading 6x earnings and because Chinese people need to drive to and fro their ghost cities. He says GM is ‘financially healthy and growing.’

CAT is lower by 1.2% in the after-hours, a mortal sin upon the House of the Dow Jones Industrial Average.

GM is higher by 1.8%.