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

To: J Mako who wrote (44671)	9/29/2011 1:30:01 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78704

re ABB - >>Interestingly, ABB has higher net margin at 8% while CBI at 5.8%. I'm wondering if because they can mark up the supplies.<< They are not just a large project construction company but they also sell electrical components, controls. In that business they compete with a company like Eaton. This is a smaller item business and carries higher margins but also more inventory because it's manufactured rather than build to order.

To: J Mako who wrote (44671)	1/29/2012 10:40:02 PM
From: E_K_S	Respond to of 78704

ABB Nears Deal for Thomas & Betts for About $4B By Zachary R. Mider - Jan 29, 2012 5:41 PM PT bloomberg.com "...Thomas & Betts, based in Memphis, Tennessee, would be the second large acquisition for ABB under Chief Executive Officer Joe Hogan, who joined in 2008 from General Electric Co. (GE) He bolstered ABB in the U.S. with the January 2011 purchase of Baldor Electric Co. for $3.1 billion. That deal added industrial motors and drives and gave ABB heft in automation, where it competes with Siemens AG. (SIE)..." ---------------------------------------------------------- Definitely not in GN Buy territory (somewhere around $14.00/share). I did notice that BV=$6.91/share but their Tangible Book Value is only $2.77/share. This is most likely due to Goodwill as a result of their other recent acquisitions (specifically $3.1B buy of Baldor Electric). The positive thing is ABB has $5.6B in cash so if their proposed offer goes through, it won't bankrupt the company. Also, they generate a lot of cash ($1.79/share cash flow) from their operations. On balance, it is probably a good acquisitions as it provides a global footprint for the company in the electric switch & connector sector which complements its other service businesses. EKS