Industrial Automation Stocks Slide
Extracts from JimPinto.com eNews dated 26 June '00 |
Industrial Automation stocks slideDuring 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.
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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 : My previous tome includes sales vs. market-cap for all the industrial automation leaders :
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