Monday, July 26, 2010

ABB Is Better Than You Think

We all know that the stock market is a discounting mechanism; what happened yesterday is only important if it changes the views about how tomorrow is going to be. With that in mind, investors should not worry about ABB's (NYSE:ABB) relatively mediocre second quarter. As the global economy recovers and resumes its growth, this international player in power infrastructure and automation should have plenty of business to pay off investor patience. 

The Quarter that Was
The global economy is not doing this company any favors. Credit is more expensive (and harder to come by) and that is an issue for the utility sector, while those same credit conditions and worries about near-term economic conditions are keeping a lid on factory expansions. 




To read the complete piece, click below:
http://stocks.investopedia.com/stock-analysis/2010/ABB-Is-Better-Than-You-Think-ABB-AEP-SO-SI-EMR0726.aspx

2 comments:

Tshad said...

Infomative article.
How does the dividend play out with it being a swiss company? Don't the swiss tax it at a higher rate?

Stephen Simpson said...

@ Tshad: Yes, they do ... but you can claim that on your income taxes and get it credited back.