CELM, UQM, EMR, CPQQ, ST, PLUG, Machinery-Electrical Stocks Undervalued
April 20, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Machinery-Electrical sector and these stocks are the most undervalued as of today. CHINA ELECTRIC MOTOR INC (NASDAQ:CELM), UQM TECHNOLOGIES INC (AMEX:UQM), EMERSON ELECTRIC CO (NYSE:EMR), CHINA POWER EQUIPMENT INC (OTCBB:CPQQ), SENSATA TECHNOLOGIES HOLDING (NYSE:ST), PLUG POWER INC (NASDAQ:PLUG) are all expected to go Up as they are Undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.
The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:
Symbol Company Name Last Close Fair Value Valuation Industry CELM CHINA ELECTRIC MOTOR INC $2.91 $4.23 31.20% Undervalued Machinery-Electrical UQM UQM TECHNOLOGIES INC $2.75 $3.42 19.60% Undervalued Machinery-Electrical EMR EMERSON ELECTRIC CO $56.73 $59.25 4.30% Undervalued Machinery-Electrical CPQQ CHINA POWER EQUIPMENT INC $0.82 $1.28 35.90% Undervalued Machinery-Electrical ST SENSATA TECHNOLOGIES HOLDING $33.09 $33.54 1.30% Undervalued Machinery-Electrical PLUG PLUG POWER INC $0.46 $2.15 78.60% Undervalued Machinery-Electrical
Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.
Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.
CHINA ELECTRIC MOTOR INC (NASDAQ:CELM) - China Electric Motor, Inc. engages in the design, manufacture, sale, and marketing of micro-motors and micro-motor components in the People's Republic of China and internationally. It offers micro-motors and micro-motor components for various applications in automobiles, power tools, home appliances, and consumer electronics. The company provides direct current motors, including brushless motors, brushed motors, servo motors, and gear motors; and alternating current motors, such as single and multiphase motors, universal motors, servo motors, induction motors, synchronous motors, and gear motors. It also offers drives; and mechanical power transmission products comprising mounted bearings, enclosed shaft mount, helical and worm gearing, bearings, sheaves, and conveyor pulleys. The companys mechanical power transmission products are used in various applications and industries, including mining, petroleum, aggregate, unit handling, power generation, and package handling. China Electric Motor, Inc. sells its products under Sunna brand name. It sells its products directly to original equipment and automobile manufacturers, and distributors and resellers, as well as through its Web site. The company is based in Shenzhen, China.
UQM TECHNOLOGIES INC (AMEX:UQM) - UQM Technologies, Inc., together with its subsidiary, UQM Power Products, Inc., engages in the research, development, and manufacture of permanent magnet electric motors and the electronic controls for such motors. It operates in two segments, Technology and Power Products. The Technology segment conducts research and engineering activities directed towards the development of new motors, generators, and power electronic controllers to meet the requirements of customers specific product applications; and the integration of its motors, generators, and power electronic controllers into customers' products. The Power Products segment involves in the manufacture of motors, generators, and power electronic controllers. Its products include electric propulsion systems, higher power engine generators, electric auxiliaries and DC-to-DC converters, and DC-to-AC inverters, as well as propulsion systems for electric, hybrid electric, plug-in hybrid electric and fuel cell electric vehicles, under-the-hood power accessories, and other vehicle auxiliaries. The company sells its products to customers in the automotive, agriculture, industrial, medical, and aerospace markets. UQM Technologies, Inc. was founded in 1967 and is headquartered in Frederick, Colorado.
EMERSON ELECTRIC CO (NYSE:EMR) - Emerson Electric Co., a diversified global technology company, engages in designing and supplying product technology, as well as delivering engineering services and solutions to various industrial, commercial, and consumer markets worldwide. Its Process Management segment offers customers product technology, as well as engineering and project management services for precision control, monitoring, and asset optimization of oil and gas reservoirs, and plants that produce power, or that process or treat items, such as oil, natural gas, and petrochemicals; food and beverages; pulp and paper; pharmaceuticals; and municipal water supplies. The companys Industrial Automation segment provides integrated manufacturing solutions to the manufacturers of products, including motors, power transmissions, alternators, fluid controls, and materials joining equipment. Emerson Electrics Network Power segment designs, manufactures, installs, and maintains products providing grid to chip electric power conditioning, power reliability, and environmental control for telecommunication networks, data centers, and other critical applications. This segment offers power systems, embedded power supplies, precision cooling products, inbound power systems, and connectivity products. The companys Climate Technologies segment provides products and services for areas of the climate control industries, including residential, commercial, and industrial heating and air-conditioning, as well as commercial and industrial refrigeration. Its technology enables homeowners and businesses to manage their heating, air-conditioning, and refrigeration systems. In addition, this segment digitally controls and remotely monitors refrigeration units in grocery stores and other food distribution outlets. Emerson Electrics Appliance and Tools segment offers products and solutions in motors, appliances and components, tools and storage areas. The company was founded in 1890 and is based in St. Louis, Missouri.
CHINA POWER EQUIPMENT INC (OTCBB:CPQQ) - China Power Equipment, Inc. manufactures and sells amorphous alloy transformer cores in China. Its transformers are energy saving transformers for the power grid, which results in 60 to 70 % reduction of the loss. The company offers its products to electricity generation and supply companies, suppliers of electrical equipment, and other electric power transformers manufacturers. China Power Equipment, Inc. was founded in 2004 and is based in Xi'an, the Peoples Republic of China.
SENSATA TECHNOLOGIES HOLDING (NYSE:ST) - Sensata Technologies Holding B.V., an industrial technology company, engages in the development, manufacture, and sale of sensors and controls worldwide. It produces a range of sensors and controls for mission critical applications, such as thermal circuit breakers in aircraft, pressure sensors in automotive systems, and bimetal current and temperature control devices in electric motors. The companys primary products include pressure sensors, force sensors, position sensors, motor protectors, and thermal and magnetic-hydraulic circuit breakers and switches. It develops solutions for specific customer requirements or applications across the appliance, automotive, heating, ventilation, air-conditioning, industrial, aerospace, defense, data/telecom, and other end-markets. The company was founded in 1916 and is based in Almelo, the Netherlands.
PLUG POWER INC (NASDAQ:PLUG) - Plug Power Inc., a provider of alternative energy technology, involves in the design, development, and manufacture of fuel cell systems for industrial off-road markets and stationary power markets. The company develops and sells a range of fuel cell products and services, including hydrogen fuel cell low-temperature Proton Exchange Membrane (PEM) systems for motive and stationary power and a high-temperature fuel cell system for residential and light commercial co-generation. Its product line includes PEM GenDrive power unit for sale on commercial terms for industrial off-road (forklift or material handling) applications, with a focus on multi-shift high volume manufacturing and high throughput distribution sites. The company sells its products to business, industrial, and government customers worldwide through its direct product sales force, original equipment manufacturers, and their dealer networks. Plug Power has a strategic agreement with Hindustan Petroleum Corporation Limited to ensure proper fuel support at various remote cell tower locations in India. The company was founded in 1997 and is based in Latham, New York.
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