Koninklijke Philips Electronics NV (ADR) (PHG)

Good, diversified, international company, not located in the United States, and spending a lot on development of LEDs as alternative to incandescent lighting, which will be one of the largest markets over the next decade. Philips is well positioned to grab a hefty hunk of that market share. A strong, solid company with lots of growth potential.

With the concern over small amounts of mercury in the Compact Fluorescent Light Bulbs, I believe you will see a rise in LED light bulbs useage. This company is leading the way with LED light bulbs and the company will grow as demand for these products increase.

Definitely a long term out-perform on this one, very diverse products, similar to GE, global company, gets exposure to all markets, should be relatively safe if there is a market drop, and the balance sheet is crazy, tons of cash and low debt make this a good pick for any risk adverse person.

New Medical & lighting products to be introduced in 2010... Should help turn things around once the economic slump reverses..

Recently finished a mulit-year reorg internally. Pared off semi-conducor buisness which will allow historically strong R&D to go into core buisnesses. Addition of multipe medical buisnesses puts company in an interesting position. Strength in specialized lighting gives a decent revenue boost. Core competencies strong, some commodities but largely in higher niches of those markets

LED advances connect directly to reduction in energy usage. As energy climbs so will PHG as companies look for ways to reduce consumption.

Philips Electronics can trace it roots back in early 1890’s as Philips and Co. It is now a global electronics company with activities in the domains of healthcare, lifestyle, and technology. The company operates in five diversified segments i.e. Medical Systems; Domestic Appliances and Personal Care; Consumer Electronics; Lighting; and Other Activities. The Consumer Electronics segment offers a wide range of products ranging from conventional television to the latest home theater system, and is a major contributor, generating around 30% of the over all inflows. Medical Systems segment that provides various imaging systems for X-ray and MRI scans, has now become an important driving factor for the company, and garners significant contribution.

Philips has been in a transforming phase, trying to focus on core activities and high margin segments. The current performance is showing a dent in revenues due to the sale of the semi-conductor division and chip unit. However all the restructuring is starting to make a positive impact on the margins and the profits. The rising performance of the segments like Medical Systems and high order book is also proving positive.

The Dutch major in 2007, looks in a good state to reap the benefits. The transformed balance sheet with hiving-off of non-profitable activities could do well in making the inflows less volatile. The added concentration on high margin products like flat television will have a positive impact in the margins as well. Further, the highest dividend payout of 36 percent and reduced tax rate also augers well for its shareholders. Adding to it, the set launch of various technologies like Philips' Digitally Enhanced Cordless Telecommunication and its acquisition of Intermagnetics the provider of high-field superconducting magnets used in MRI, garners company’s credentials in the long term prospective, making Philips a good investment with solid fundamentals.

Philips Electronics at $17 is a good value, if you bought the company and sold its parts, the stock is worth considerably more than $17. PHG is moving aggressively into LED lighting products, playing off of the energy savings craze throughout the world. With the aging of the industrialized world's population, PHG's medical products will also provide solid growth in the near future. The only segment of their business that is troublesome is consumer electronics.

A great old company with new innovative ideas. They bought Color Kinetics, a favorite technology with me because of the artistic possibilities. I will be interested to see how they compete in the medical arena, considering that GE also produces medical equipment.

Looking forward to LED paying off.

Cheap

Having just acquired Color Kinetics indicates that this company understands the general direction of the industry, the trend to move toward LED based universal lighting in the near future, and how to position themselves in the market to be successful long term.

A solid and tactically diverse company which will only be minimally affected by any US consumer recession, despite having half of their sales in the consumer arena (due to an ever expanding emerging markets portfolio). Since they've sold their Semicondutor unit to KKR (now NXP Semiconductors) in 2006, they've done a very good job of reallocating the captial back to the businesses which they see the highest growth potential...the home healthcare business (Lifeline, Health Watch, Respironics) and lighting businesses (PLI, Color Kinetics and now the US lighting market with Genlyte). Not to mention a sizeable share buyback and a decent dividend payout (70 euro cents in 2008). Definitely a company to watch as the recession fears persist...

Philips is an investor in eInk, Inc, which I think is the next big killer app.

I'd love to say "this is a strait shooter with upper management written all over him" but that would be disingenuous. I do however think they make solid to exceptional products, especially health care products (my business) and are generally able to charge a high premium for those products. Currently this stock is way undervalued, and a steal even for a few percentage points.

Strong returns for the size, their P/E puts them at an extraordinary value.

Everybody likes lights.

Good stats - good timing - should climb within the next year

Fortune 40 Foreign Value