Caterpillar Inc. (CAT): A Bad Bet in China

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As with every business there are obstacles for Deere to overcome. The company seems to be struggling in foreign markets as this example highlights. Despite controlling approximately half of the Indian market for tractors greater than 50 horse power, these machines account for less than 10% of the country’s market, yet over 50% in North America. To help gain traction internationally, Deere has released new products in Brazil which have performed well.

The Foolish Conclusion…

Investors can learn a lot from these companies. Europe seems to be very risky at the moment, but Caterpillar should be ok despite its questionable acquisitions. Deere seems to be struggling in India, despite controlling half of the Indian market. Both stocks are performing well, but Deere seems to present a better value than Caterpillar. Whichever company figures out the foreign markets first will likely see more immediate success.

The article A Bad Bet in China originally appeared on Fool.com and is written by Tyler Wofford.

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