August 10, 2012
In today's edition, industrials editor/analyst Brendan Byrnes discusses Caterpillar, which has been dealing with a union machinists strike at a hydraulics plant in Joliet, Ill. Looking at this from purely an investor's point of view, the strike is unlikely to affect Caterpillar in the short term in a material way. The company can likely shift production elsewhere to offset the output from the factory. There is some reputational risk for Caterpillar, which has a history of being tough on unions, as the strike gets more and more media coverage. Still, Brendan thinks this is not something Caterpillar investors should be concerned about right now. Check out the video below for more on the issue, and Brendan's opinion of the stock.
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