$92.13
-0.42 (-0.45%)
Siemens AG (ADR) (SI)
CAPS Rating:
The Company manufactures, distributes and supplies industrial products in the fields of electrical engineering and electronics, mechanical engineering, precision mechanics as well as related sectors of engineering.
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SI has been highly successful before the financial crisis, albeit with the aid of a weakening dollar.
Siemens' focus on their three megatrend sectors, Industry, Energy, Medicare, will aid it through the shortterm 'recession': people are getting older, countries are becoming increasingly industrialized, and more energy is needed.
A risk is a stronger dollar...which effects this ADR, but Siemens is trading at almost 35% of its high 9-10 months ago.
With the SEC and German fines finally behind SI, this risk to Siemens (having to pay fines that were originally rumored to possibly be over 3 billion EUR...and fell short of 1 B at the end of the day) is finally off the slates to potential worried investors. SI put 'aside' 1 B EUR at the end of their FY08 (ended Sep 08) for the potential fines, so the fines will not effect the bottom line of the company in FY09 (begins Oct 08). SI's focus on the three megatrend sectors (Industry, Medicare, Energy) has added focus to the corporate culture.With a very full order backlog with large orders, with a changed corporate organization which stresses corporate compliance and passion for the customer, and with the recent 'dark' past it, SI should become even more attractive to investors looking for a large blue chip that has been beaten by the markets.