The Richest Woman in the World: How Gina Rinehart Earns her Billions
Why Dell Will Never Be Great AgainOn tonight's MAD MONEY on CNBC, Jim Cramer continued his stock pick series for "Investing in Europe" with Germany's Siemens AG (NYSE:SI/ADR). He likes the conglomerate that participates in 9 sectors and considers it Europe's version of General Electric (NYSE:GE). The breadth of its businesses also lets it win projects that other companies cannot handle.
Here is the problem with this call: Siemens is a great company but its valuations look higher than most of the other large conglomerates. Its market cap is $131 billion on a currency adjusted basis. Part of its100% rise in ADR's is because of the weak dollar, but even in Euros this stock is up more than 60% over the last year. Keep in mind that these are all ADR's, and even active ADR's tend to trade fewer shares in the US than their US-based competitors.
Philips Electronics (NYSE:PHG) was his top EU pick on Monday, and that is another conglomerate.
His pick from Tuesday was Switzerland's ABB Ltd. (NYSE:ABB), a key infrastructure play.
Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.
Here is the problem with this call: Siemens is a great company but its valuations look higher than most of the other large conglomerates. Its market cap is $131 billion on a currency adjusted basis. Part of its100% rise in ADR's is because of the weak dollar, but even in Euros this stock is up more than 60% over the last year. Keep in mind that these are all ADR's, and even active ADR's tend to trade fewer shares in the US than their US-based competitors.
Philips Electronics (NYSE:PHG) was his top EU pick on Monday, and that is another conglomerate.
His pick from Tuesday was Switzerland's ABB Ltd. (NYSE:ABB), a key infrastructure play.
Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
