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Why CAT Can Climb Even Higher

By Jim Cramer

About this article:
It's like the SAT: Caterpillar is to alternative oil projects as Deere is to renewable fuels. But beyond Gators and mowers, Deere has very little housing-related, while, unfortunately, the domestic housing industry needs Caterpillars to do the job. What's happening today is a combination of a Merrill Lynch push for CAT and some big orders CAT is winning right now for oil shale projects. It has taken forever -- or at least it seems that way -- to get to the point where CAT is less levered to Toll and Lennar and more levered to Foster Wheeler and McDermott . But now it is happening in full force, and that should take CAT much, much higher. I like Deere up here because of the politics of ethanol, but I like CAT because of the economics of the giant infrastructure and fuel mining...

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