ABB Ltd (ADR) (ABB)

TheGarcipian (99.35) Submitted: 6/13/08 8:22 PM : Start Price: $29.54 ABB Score: -17.01

Brought to my attention by a blog from CAPS player "odmonk", I see this stock has done quite well over the past 5 years, moving up 6X in that time. Amazing. I'm probably late to this party (again), but the financial numbers still look good to me. In particular, the PEG is moderately low at 0.84 (which is slightly less than its industry average of 0.94), and it has decent returns for its industry.

Plus, power distribution systems and technologies to make these systems more efficient and extensive will continue to be in high demand, particularly if oil stays above $100/barrel (which I believe it will). High-priced oil will push more use of energy via coal, wind, solar, and water dams, all of which are heavily reliant upon electrical distribution systems because they are less portable than oil. While I don't think you'll get another 5X-6X gain in 5 more years, this should continue to be an excellent long-term investment.

For comparison in a year, here are the stats as they stand today (6/13/2008): PEG=0.84; Trailing & Forward P/Es are 16.3 & 15.3; EV/EBITDA=12.1; Profit & Op. Margins are 13.6% & 14.7%; RoA=9.5%; RoE=37.8%; Quarterly Revenue & Earnings growth are 28% & 86.8%; Rev=$31B on a MarketCap of $68.7B; Debt/Equity=22.7%; and Book Value (at $5.23/share) is an easy one-sixth of the stock price ($30/share).

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