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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