Industrial Automation Stocks Slide

Extracts from JimPinto.com eNews dated 26 June '00

Industrial Automation stocks slide

During the past months, the stocks of several major industrial automation leaders have been sliding significantly. Honeywell (HON) and Rockwell (ROK) traded at their 52-week low this week, on profit-warnings and general bad news. Emerson (EMR), Eaton (ETN) and Danaher (DHR) fared a bit better, but their stocks too have gone nowhere in the past year. Tyco (TYC) has hit some rough spots, but seems to be recovering.

You'll find lots of interesting information, with graphs, charts, facts and figures on the web. Take a look for yourself on the Yahoo Financial news website: Click
To round out the majors, Siemens, ABB, Schneider, Invensys and Yokogawa are a bit more difficult to track, since they are on several different foreign exchanges and their stock prices are quoted in a hundred different currencies and formats. But their stocks too have been going nowhere fast.

Crystal Ball Pinto's Analysis & Predictions :
At $ 75b sales, and $100b market-valuation, Siemens is still the largest fish in this pond, looking for further feeding to fuel its growth.

Honeywell is stewing in its own Allied merger juice and will probably sell-off Industrial Automation (IAC) when someone makes a good enough offer to bypass their protests that it is not yet available. Or, if no one is bold enough, they will eventually piece-meal it off.

Rockwell, has sales of $7b and a market-valuation of $ 6b. Eaton has sales of $ 9b with a market-cap of $5b. These two, with proximity in both Milwaukee and Cleveland, should be talking seriously before either, or both, become targets. Smaller Danaher, sales $ 3b and market-cap $ 6b, is probably eyeing them both even as we speak. Invensys is busy with Baan, pruning for profit. Which leaves Emerson, with $ 15b sales and $ 26b market-cap, either ready to acquire or be acquired.

Quote : "You're either the steamroller, or part of the pavement!"

My article gives you the background on these machinations :

Changing Face of Automation "The Changing Face of Automation"

My previous tome includes sales vs. market-cap for all the industrial automation leaders :

The Urge to Merge Urge to Merge
The "famous list" (Hey, no one else seems to publish these facts and figures for industrial automation) is about a year old. I'll update it soon in Urge-to-merge-2 - stay e-tuned!


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