Best of the Week
Most Popular
1.UK General Election BBC Exit Polls Forecast Accuracy - Nadeem_Walayat
2.UK General Election 2017 Seats Final Forecast, Labour, Conservative Lib-Dem, SNP - Nadeem_Walayat
3.UK General Election 2017 Forecast: Conservative 358, Labour 212 Seats - Nadeem_Walayat
4.Theresa May to Resign, Fatal Error Was to Believe Worthless Opinion Polls! - Nadeem_Walayat
5.UK House Prices Forecast General Election 2017 Conservative Seats Result - Nadeem_Walayat
6.The Stock Market Crash of 2017 That Never Was But Could it Still Come to Pass? - Sol_Palha
7.[TRADE ALERT] Write This Gold Stock Ticker Down Now - WallStreetNation
8.UK General Election Results Map 2017 vs 2015 vs Opinion Polls - Nadeem_Walayat
9.Orphaned Poisoned Waters,Severe Chronic Water Shortage Imminent - Richard_Mills
10.How The Smart Money Is Playing The Lithium Boom - OilPrice_Com
Last 7 days
US Bonds and Related Market Indicators - 27th Jun 17
Stocks At Record Highs: Market Sentiment Still Bullish - 27th Jun 17
Stock Market Running Out of Steam - 27th Jun 17
Gold Back With A Vengeance As Bitcoin Bubble Bursts - 26th Jun 17
Crude Oil Trade & Nasdaq QQQ Update - 26th Jun 17
Gold and Silver Ongoing Consolidation May End Soon - 25th Jun 17
Dollar May Become “Local Currency of the U.S.” Only - 25th Jun 17
Sheffield Great Flood of 2007, 10 Years On - Unique Timeline of What Happened - 24th Jun 17
US Stock Market Correction Could be Underway - 24th Jun 17
Proof That This Economic Recovery Narrative is False - 24th Jun 17
Best Cash ISA for Soaring Inflation, Kent Reliance Illustrates the Great ISA Rip Off - 24th Jun 17
Gold Summer Doldrums - 23rd Jun 17
Hedgers Net Short the Euro, US Market Rotates; 2 Horsemen Set to Ride? - 23rd Jun 17
Nether Edge By Election Result: Labour Win Sheffield City Council Seat by 132 Votes - 23rd Jun 17
Grenfell Fire: 600 of 4000 Tower Blocks Ticking Time Bomb Death Traps! - 22nd Jun 17
Car Sales About To Go Over The Cliff - 22nd Jun 17
LOG 0.786 support in CRUDE OIL and COCOA - 22nd Jun 17
More Stock Market Fluctuations Along New Record Highs - 22nd Jun 17
Understanding true money, Pound Sterling must make another historic low, Euro and Gold outlook! - 22nd Jun 17
Green Party Could Control Sheffield City Council Balance of Power Local Election 2018 - 22nd Jun 17
Ratio Combo Charts : Hidden Clues to the Gold Market Puzzle - 22nd Jun 17
Steem Hard Forks & Now People Are Making Even More Money On Blockchain Steemit - 22nd Jun 17
4 Steps for Comparing Binary Options Providers - 22nd Jun 17
Nether Edge & Sharrow By-Election, Will Labour Lose Safe Council Seat, Sheffield? - 21st Jun 17
Stock Market SPX Making New Lows - 21st Jun 17
Your Future Wealth Depends on what You Decide to Keep and Invest in Now - 21st Jun 17
Either Bitcoin Will Fail OR Bitcoin Is A Government Invention Meant To Enslave... - 21st Jun 17
Strength in Gold and Silver Mining Stocks and Its Implications - 21st Jun 17
Inflation is No Longer in Stealth Mode - 21st Jun 17
CRUDE OIL UPDATE- “0.30 risk is cheap for changing implication!” - 20th Jun 17
Crude Oil Verifies Price Breakdown – Or Is It Something More? - 20th Jun 17
Trump Backs ISIS As He Pushes US Onto Brink of World War III With Russia - 20th Jun 17
Most Popular Auto Trading Tools for trading with Stock Markets - 20th Jun 17
GDXJ Gold Stocks Massacre: The Aftermath - 20th Jun 17
Why Walkers Crisps Pay Packet Promotion is RUBBISH! - 20th Jun 17

Market Oracle FREE Newsletter

The MRI 3D Report

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

© 2005-2017 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