Best of the Week
Most Popular
1.Crude Oil Price Trend Forecast 2016 Update - Nadeem_Walayat
2.Will Deutsche Bank Crash The Global Stock Market? - Clif_Droke
3.Gold Price In Excess Of $8000 While US Dollar Collapses - Hubert_Moolman
4.BrExit UK Economic Collapse Evaporates, GDP Forecasts for 2016 and 2017 - Nadeem_Walayat
5.Gold Stocks Massive Price Correction - Zeal_LLC
6.Stock Market Predicts Donald Trump Victory - Austin_Galt
7.Next Financial Crisis Will be Far Worse than 2008/09 - Chris_Vermeulen
8.The Gold To Housing Ratio As A Valuation Indicator - Dan_Amerman
9.GDXJ Gold Stocks - A Diamond in the Rough - Rambus_Chartology
10.Gold Boom! End Game Nears As Central Banks Buying Up Gold Mining Companies! - Jeff_Berwick
Last 7 days
Here’s Why You Should Be in Cash Right Now - 28th Sept 16
The Fed Put a 50% Tax on Your Retirement Plan - 28th Sept 16
Massive Chinese Debt And Why They Are On A Gold Buying Binge! - 28th Sept 16
Stocks Commodities and FX Markets Waiting Technically While Fundamental Data Neutral Poised - 28th Sept 16
This Commodity Has Perked Up its Investors' Portfolios - 27th Sept 16
Charting the Continuing Gold Market Correction - 27th Sept 16
Stock Market Crash and Recession Indicator Warning: Extreme Danger Ahead - 27th Sept 16
Financial Markets and FX Setups 27th Sept - 27th Sept 16
Crude Oil, Forex and Stock Market Trend Forecasts - 27th Sept 16
Why There is Trump - 27th Sept 16
Save Up to 70% in Shopping Expenses for Daily Items - 27th Sept 16
Gold’s Moving Averages and Long-Term Outlook - 26th Sept 16
September Stock Market - The Not So Silent Demise of Deutsche Bank - 26th Sept 16
SPX sell signal confirmed - 26th Sept 16
SPX is testing the next level of support - 26th Sept 16
Outrageously Entertaining US Presidential Campaign Final Stages - What Happens Next? - 26th Sept 16
BoJ, FOMC and Where To Now? - 26th Sept 16
Stock Market New All Time Highs Next - 26th Sept 16
Why Trump Will Win US General Election 2016 Prediction Forecast - 26th Sept 16
Martial Law Rolls Out Across the US As Jubilee Nears - 26th Sept 16
Stock Market More Correction Likely - 25th Sept 16
US Presidential Election Forecast 2016 - Trump Riding BrExit Wave into the White House - 25th Sept 16
US Economy GDP Growth Estimates in Free-Fall: FRBNY Nowcast 2.26% Q3, 1.22% Q4 - 24th Sept 16
Gold and Gold Stocks Corrective Action Continues Despite Dovish Federal Reserve - 24th Sept 16
Global Bonds: Why Our Analyst Says Things Just Got "Monumental" - 24th Sept 16
Where Did All the Money Go? - 23rd Sept 16
Pension Shortfalls Could Be 4X To 7X Greater Than Reported - 23rd Sept 16
Gold Unleashed by the Fed - 23rd Sept 16
Gold around U.S Presidential Elections - 23rd Sept 16
Here’s Why Eastern Europe Is Doomed - 23rd Sept 16
Nasdaq NDX 100 Big Cap Tech Breakout ? - 23rd Sept 16
The Implications of the Italian Banking Crisis Could Be Disastrous - 22nd Sept 16
TwinLakes Theme Park Summer Super 6 FREE Return Entry for Real? - 21st Sept 16
Has the Silver Bullet Run Out of Fire Power? - 21st Sept 16
Frack Sand: The Unsung Hero Of The OPEC Oil War - 21st Sept 16
What’s Happening With Gold? - 21st Sept 16
Gold vs. Stocks and Commodities, Pre-FOMC - 20th Sept 16
BrExit UK Inflation CPI, RPI Forecast 2016, 2017 - 20th Sept 16
European banks may be more important than the Fed this week - 20th Sept 16
Gold, Silver, Stocks and Bonds Grand Ascension or Great Collapse? - 20th Sept 16
Mass Psychology in Action; Instead of Selling Gilead it is Time to Take a Closer Look - 20th Sept 16
Hillary - Finally Well Deserved Recognition for Deplorables - 20th Sept 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The Power of the Wave Principle

Innovation Investing: Now is the Time to Buy ABB Stock

Companies / Tech Stocks May 04, 2012 - 06:11 AM GMT

By: Money_Morning

Companies

Best Financial Markets Analysis ArticleG. S. Early writes: As investors, we constantly hear that the markets are forward looking. There is a good reason for that.

The future is precisely where smart investors need to be focused these days.

It doesn't matter whether you are investing for income or for growth, it is what's over the horizon that matters most.


One of those horizons is the "New Energy Age".

It's a place where technology is having an enormous impact on how we generate, distribute and consume energy on every level.

And the companies that embrace this paradigm shift are creating a whole new approach to the markets I call Innovation Investing.

One of the poster children for Innovation Investing is ABB (NYSE: ABB). A go-to player in every major market, including the United States, ABB is a must for any long-term investor.

The Story Behind ABB (NYSE: ABB)
The Switzerland-based company is a global leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact.

For some that may sound "green" but for most of its customers, it's about improving efficiencies and the bottom line.

This is a company that is not only a major global player in all the major markets in the world-- developed and developing--but it does almost everything in the energy business. And usually it is on a scale that few others can match.

Plus, ABB kicks off a nice dividend yield that's approaching 4%.

But with all of these global opportunities for ABB, the company's recent quarterly numbers stumbled because China has slowed. That was enough for Wall Street analysts to begin to bail on the stock.

That's true even though ABB has been deeply involved in building out China's energy infrastructure, including China's smart grid. ABB has also been busy in China implementing new renewable energy resources as well as integrating them with traditional energy sources.

At this point, it is safe to say that China is both its brightest spot and its Achilles heel. However, investors shouldn't expect ABB's Chinese troubles to last for long. The opportunities are simply too great.

So for investors built of stronger stuff, and that have a calmer temperament than over-caffeinated Wall Street types, ABB is an excellent long-term "Buy."

Put it this way: If you think the energy and infrastructure sectors are going to be big global markets for the next couple decades, then ABB is a "Must-Buy," especially at these levels.

And while China recovers, ABB gives you the chance to buy the 21st century version of a widows-and-orphan stock at a great price.

China is Just Part of the ABB Story
But enough obsessing over China for a moment...

Here's what's been going on elsewhere in ABB in just the last four weeks:

In the U.S.: ABB received Department of Justice antitrust clearance to purchase Thomas & Betts (NYSE: TNB). The 130-year-old company is well-established in commercial and industrial construction, industrial plant maintenance, repair and operation, electrical utility distribution, and original equipment manufacturing.

ABB also won a long-term service contract from Carnival Corp. (NYSE: CCL) - the largest cruise ship line in the world - to maintain and upgrade ABB's Azipod equipment over the next 15 years for 20 ships in their fleet, cutting costs by as much as $1 million a year per ship.

In yet another contract, ABB secured $45 million from U.S. utility Oncor (formerly TXU), to provide electrical solutions that will increase transmission capacity, ensure grid stability, and facilitate the integration of renewable power in Texas.

In Europe: In Germany, ABB built a link from offshore wind turbines to the mainland grid which has a capacity to transmit 111 megawatts (MW) of clean wind power. That's enough to serve the needs of more than 100,000 households and help save up to 500,000 tons of carbon dioxide emissions per year, once commissioned in 2013, by replacing fossil-fueled generation.

In the Middle East, Asia and Australia: ABB has won a $60 million contract from Shell Gas Iraq B.V. to build a new power plant in southern Iraq. It also has won an order worth approximately $16 million from Mass Global Investment Co. for the construction of a substation and static VAR compensator (SVC) system that will supply electricity to a new melt shop and steel rolling mill in northern Iraq.

ABB also won a $70 million contract to execute substation projects for the Saudi Electricity Company (SEC), the country's national power transmission and distribution operator.

In India, ABB won an order worth $15 million from Delhi Metro Rail Corporation Limited (DMRC) to provide power solutions for a planned metro rail network for Jaipur, the capital of Rajasthan, a state in northern India. And the company is investing another $50 million to expand its power products manufacturing base in the western state of Gujarat.

In Western Australia, ABB has won orders worth around $100 million from Rio Tinto (NYSE: RIO) for 17 distribution substations to support increased production at iron ore mines.

In Japan, AAB won an order worth $60 million to provide complete power and propulsion systems for two new cruise ships to be built by Mitsubishi Heavy Industries.

So, as you can see, China is just a part of the ABB story. In the bigger picture, ABB is an investment in an energy future well on its way to becoming a reality.

What's more the stock went ex-dividend on Wed., May 2, so it's an even better deal now. Buy ABB under $22/share.

Source :http://moneymorning.com/2012/05/04/innovation-investing-now-is-the-time-to-buy-abb-ltd-nyseabb/

Money Morning/The Money Map Report

©2011 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife