Growth & Success eNews No. 6, June 26, 2000

JimPinto.com - Connections for Growth & Success™
No. 6 : June 26, 2000

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:
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.

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 :

"The Changing Face of Automation"

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

The 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!

eFeedback - Agilent gives up on industrial Ethernet ?

Following my coverage of the Agilent "Discontinuance Notice" on their industrial Ethernet products, Willy Smith commented, all the way from Costa Rica :

"Discontinuing two products is not the same as giving up on Industrial Ethernet. I don't get that message from the letter; also, I know some of those guys at Agilent, and they're not bailing out or interviewing. Maybe you should put in a question mark: "Agilent gives up on Industrial Ethernet?" Or do you have additional information?"

My friends at Agilent, responded loud and clear:

"The key people involved are happy with what they are doing. Several companies now have new products based on 1451, which Agilent championed. The discontinuance was a mere "shelving" due to more pressing business goals. The industrial controls market is not going to change anytime in the near future. It will need to be someone like Agilent, someone from the computer world, who will change the old industrial thinking".

Bluetooth is coming!

Bluetooth is a high-speed, low-power microwave wireless link technology, designed to connect phones, laptops, PDAs and other portable equipment together with little or no work by the user. This radio-based technology enables devices to communicate wirelessly at close range, without the need for direct line of sight or additional communications protocols. The technology, which is supported by Intel, Microsoft and everybody who is anybody, is most notable for its small size and low cost and will be included within equipment rather than being an optional extra.

Incidentally, the standard's name points to its Nordic origin (the standard was originally proposed by Ericsson and Nokia). Bluetooth was a medieval king credited with uniting all of Scandinavia.

To read all about this important new technology, and the companies that are involved, click your browser on :

The Bluetooth website

The above extract is part of my new article which is published in the July 2000 issue of Controls Intelligence & Plant Systems Report. Take a look at the complete article on the web at :

The Intelligent Connected Appliance

Controls Intelligence & Plant Systems Report

Speaking of which, do YOU receive a regular copy of this monthly (in print) news letter? It was started by Jack Grenard, noted for his ability to get the inside-scoop on industrial controls news and publishing it fast and straight, without kissing up to advertisers. When Jack retired, he sold this important publication to Jim Heaton (the well-known industrial automation consultant) and KVQuest in Michigan - where it is being run by Audra Lungo and Katrina Snyder.

Jack still write a column in his inimitable style. And, you'll find my regular Pinto's Pointers column there. Each issue is packed with up to date industry news, articles and opinions. And, when something special happens that cannot wait a month, you'll get an email alert.

Annual subscription $ 195.00 - contact :

Circulation@KVQuest.com

Hot Book : Management Challenges of the 21st Century

At age 91 (born 1909) Peter Drucker is more than ever incisive, challenging, thought-provoking, forward-looking and forward thinking. Drucker is indeed the most important management thinker of our time. His most recent book (2000) includes new and revolutionary ideas and perspectives on the central management issues of the new century. Those who prepare themselves for these challenges today will be the new leaders and will dominate tomorrow. If you are in management, or marketing, you must read this book!

Note : You might like to listen to audio-cassettes in the car - I listened to Drucker's 21st century tapes repeating for a month.

Browse my review of this book, and other suggested reading

eSpeak to me !

If you like my Merger-urge comments and smell something fishy in your pond, please e-let me know and I'll check it out.

If you have comments or suggestions for Growth & Success News, please contact Jim Pinto at Mailto:Enews@JimPinto.com . I'd like to e-hear from you. Please send your tips and alerts - or air your news, views and stews.