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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (37968)	5/26/2010 1:33:50 AM
From: Spekulatius	Read Replies (3) \| Respond to of 78748

ALO.PA - infrastructure play. Alstom is a french infrastructure company. Business lines are power generation (they are larger than GE in this line), transporation (the famous TGV trains amongst other things) and transmission (they bought this from Areva for a decent price of 8x EBITDA). Alstom current earnings are 3.8 Euro and thte stock trades at 37 Euro. Their balance sheet is in good shape (1.5B$ net cash) and a BBB+ credit rating. Their outlook near terms seems somewhat subdued - their order book is great but orders have shrunk during the crisis (no surprise here) and although they are rebounding the Book-bill is still below 1. This looks very much like ABB but somewhat cheaper. ABB's margins are higher (13% EBITDA margin compared to Alstoms 9%) and ABB seems to have a better near term outlook as well (although their B/B is <1 as well) or maybe they are just more optimistic. I think the lower Euro will help them to gain business outside Europe (currently ~45%) and improve margins. Here is Alstoms Annual report: alstom.com Recent analyst presentation: alstom.com I don't own it yet but I am seriously considering to buy via Interactive brokers.