Online Stock Trading Software

Three Attractive Global Infrastructure Stocks

Analysts are expecting global spending on energy and power infrastructure to grow nearly 10% a year for the next 5 years. Today we will look for values on companies in the global marketplace engaged in the construction of power plants and/or the associated electrical distribution equipment.

Audio Podcast:
An audio podcast of this article is available at:

Signup now for PowerOptions free 14-day trial

Three likely candidates are General Electric (GE), Siemens (SI) and ABB Ltd. (ABB). These companies, when compared by market capitalization, are the 2nd, 42nd, and 164th largest companies in the world. The stocks have also seen crazy growth in the last 12 months. ABB’s stock has grown 112%, Siemens is up 96% and GE has returned a healthy 27%.

Signup now for PowerOptionsApplied 30-day risk free trial

But with all this growth, many among you may be asking, “Is there any growth potential left in these companies?” The answer many analysts find themselves giving is, “Yes.”

Four reasons why these 3 companies might be a good deal:
1)These companies all can squeeze greater profitability from internal restructuring. GE has recently sold its plastics division, Genworth and GE Insurance Solutions. GE is also lining up to make acquisitions in the oil, gas and water markets. Siemens sold its telecom handset business and plans to sell off close to $40 billion from its core portfolio in the coming year.

2)The global infrastructure market looks very favorable. China is expected to spend about $40 billion this year on power plants. The recently deregulated European countries are likely to spend more on increased power generation. And the always power hungry US is likely to beef up its power infrastructure over the next five years.

3)Financial returns are likely to rise as management increasingly focuses on its companies return on invested capital. This factor is largely attributed to private equity firms’ penchant for snapping up companies and selling off underperforming divisions. Large corporations like the three listed have learned from this approach and are expected to put a similarly critical eye to their internal divisions. Historically, maintaining market share would drive financial decisions, now profitability seems to be the chief concern.

4)The three companies mentioned are under new management. All three companies have a significant amount of new blood at the top and analysts feel this may lead to more profitable decisions in the future.

Looking at this News from an Options Trading Perspective:
Finding the right option trade can be difficult for investors if they don’t have a solid search tool to help them identify trades. Option data and information is often cumbersome and difficult to find. An option investor requires the aid of a reliable tool to help them with the difficult task of identifying solid option trades.

PowerOptions‘ award winning search tools are exactly what an options investor requires to find desirable trades. Call PowerOptions at 877-992-7971 to start your free trial.

Potential Trades:
All of the following option trades have 64 and 92 days until expiration. These trades were discovered using the powerful suite of option search tools found at PowerOptions.

Covered Call Search
Symbol Stock
ABB Ltd. ABB 24.09 ABBIE 07 SEP 25.0 (64) 1.15 4.8 5 9
ABB Ltd. ABB 24.09 ABBIX 07 SEP 22.5 (64) 2.5 10.4 4.2 4.2
General Electric Co. GE 40.12 GEIH 07 SEP 40.0 (64) 1.34 3.3 3.1 3.1
Siemens AG SI 146.59 SIJJ 07 OCT 150.0 (92) 7.7 5.3 5.5 8
Siemens AG SI 146.59 SIJI 07 OCT 145.0 (92) 10.1 6.9 6.2 6.2
(For more details click the ticker symbol above)

These trades offer between 3.3 and 10.4% downside protection and between 3.1 and 9% potential profit. Note the Siemens trades have October expiration while the GE and ABB trades expire in September.

Competitors for ABB include: Siemens AG (SI), AREVA Group (private), Schneider Electric SA (private), Cooper Industries Inc. (CBE), Emerson Electric Co. (EMR), and Fluor Corp. (FLR).
Competitors for GE include: Citigroup Inc. (C), Koninklijke Philips Electronics NV (PHG), Siemens AG (SI), ABB Ltd. (ABB), Ametek Inc. (AME), AO Smith Corp. (AOS), Cooper Industries Inc. (CBE), Color Kinetics Inc. (CLRK), Emerson Electric Co. (EMR), Honeywell Inc. (HON), Itron Inc. (ITRI), Illinois Tool Works Inc. (ITW), Textron Inc. (TXT), and United Techs. Corp. (UTX).
Competitors for SI include: General Electric Co. (GE), Hitachi Ltd. (HIT), ABB Ltd. (ABB), ALCATEL LUCENT (ALU), American Superconductor Corp. (AMSC), ECI Telecom Ltd. (ECIL), Echelon Corp. (ELON), EMCORE Corp. (EMKR), Mettler-Toledo Intl. Inc. (MTD), Nokia Corp. ADR (NOK), Nortel Networks Corp. (NT), SonoSite Inc. (SONO), Tekelec Inc. (TKLC), and Thomas & Betts Corp. (TNB).
For more information about how to identify and research great option trades, visit the PowerOptions website. There you will find the data you need to make quick, clear, and informed decisions. You can trade knowing you have found the best investment. Also, PowerOptions will allow you, with a few quick clicks, to quickly and accurately compare trades. PowerOptions‘ premium customer support is second to none in the industry. They can be easily contacted when you need them at their toll-free number to answer customer questions. Call them now toll free at 877-992-7971.

PowerOptions provides a free 14-day trial of its service. So join PowerOptions today, and you too can start reaping the benefits of the covered call investment strategy.

PowerOptions‘ sister company PowerOptionsApplied provides expert stock option trading recommendations. PowerOptionsApplied specializes in covered calls, naked puts and iron condor stock options strategy recommendations. PowerOptionsApplied provides a 30-day risk free trial of its service.

[tags] China, European, AREVA Group, Schneider Electric SA, ABB, ABB Ltd., ALU, Alcatel-Lucent, AME, Ametek Inc., AMSC, American Superconductor Corp., AOS, AO Smith Corp., C, Citigroup Inc., CBE, Cooper Industries Inc., CLRK, Color Kinetics Inc., ECIL, ECI Telecom Ltd., ELON, Echelon Corp., EMKR, EMCORE Corp., EMR, Emerson Electric Co., FLR, Fluor Corp., GE, General Electric Co., HIT, Hitachi Ltd. ADR, HON, Honeywell Inc., ITRI, Itron Inc., ITW, Illinois Tool Works Inc., MTD, Mettler-Toledo Intl. Inc., NOK, Nokia Corp. ADR, NT, Nortel Networks Corp., PHG, Koninklijke Philips Electronics NV, SI, Siemens AG, SONO, SonoSite Inc., TKLC, Tekelec Inc., TNB, Thomas & Betts Corp., TXT, Textron Inc., UTX, United Techs. Corp., covered call investment strategy, investment strategy, iron condor, options trading, poweroptions, stock option trading, stock options [/tags]

Leave a Reply

Your email address will not be published. Required fields are marked *