Saturday, July 27, 2019

Another 'Ugh' Quarter From ABB

Looking at second quarter results, and reexamining the results over the past few years, it’s pretty clear that for all of the positives ABB (ABB) may have, including a strong portfolio of products and technologies across its electrification, automation, and robotics platforms, these assets have been badly mismanaged for years, and it’s going to take a while to climb out of this hole. New management, particularly if an outside hire is made for the CEO role, could help change the tone more quickly, but fundamental improvement will take a while and the cycle is now moving against the company.

I can’t honestly provide good reasons for choosing ABB over other automation investment options like Emerson (EMR), Rockwell (ROK), or Schneider (OTCPK:SBGSY) other than valuation and expectation. This company has beaten down to a point where I think the inherent value of the assets provides upside, but the competence of the board is very much up for debate and waiting for the ABB ship to turn could be a longer wait than most investors want.

Read more here:
Another 'Ugh' Quarter From ABB

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