Safety

"Nokia Seimens Networks, the joint venture between German conglomerate Siemens (SI), and Finnish cellphone maker Nokia (NOK), defended its decision to sell eavesdropping technology to Iran, saying Tuesday it had done nothing wrong." Read more here.

I like the space across the board, said Pete Najarian, and I think you should keep an eye on URS (URS), Fluor (FLR), Siemen's (SI) and Foster-Wheeler (FWLT).

“We’ve got an uptrend here right off the bat,” said Fitzpatrick. Higher lows and a stock price trading decisively above the 20-day moving average means that the bulls are back behind it. “Let the stock settle, then buy for a longer-term uptrend,” he recommended.

I like Conglomerates and think no matter how bad it gets: GE, SI, TIN, MMM, and LUK, will be here unlike smaller companies. All are undervalued in comparison to rolling prices last 16 years.

$110

The $96.6 billion dollar electronics and engineering giant said it will add to its buyback plan and repurchase $3.1 billion in common stock from June 9 to July 23. This amount would represent about 28 million shares. During the first part of their ongoing buyback program, which took place from January 28 to April 8, company repurchased 24.9 million shares for $3.1 billion.

“This is another important step toward achieving our capital structure goal while maintaining our financial strength. With this second tranche of our share buyback program, we’re rigorously implementing what we promised to our shareholders and owners,” said Siemens CFO Joe Kaeser.

Unfortunately, Europe’s largest engineering company reported second quarter profit that plunged 67% to $641.5 million from $2.02 billion in the same period last year. However, sales managed to increase 1% to $28.2 billion as new orders jumped 12% to $36.3 billion. The new orders growth offset the poor earnings and investors pushed the shares 3% higher following the news.

"Our order growth in the first half has been excellent on a global basis, and our industry and health care sectors combined strong growth with higher earnings," CEO Peter Loescher said.

We like to see that Goldman Sachs recently upgraded Siemens to their conviction buy list. They noted that investors are not noticing potential catalysts like the company’s new buyback and margin expansion opportunities.

On Monday, June 17th, the Munich-based company announced that it bought out BJC, Spain’s the third largest supplier of electrical switches and socket outlets. This move will allow Siemens building technology division to increase its global market share.

German industrial conglomerate Siemens said last week that it will extend its share buy back program and buy up to 2 billion euros worth of shares, or 28 million shares, from June 9 to July 23. The first tranche of the buyback program took place from Jan. 28 to April 8 when the company bought back 24,854,541 shares for approximately 2 billion euros.

The stock trades for 8x cash flow.

owns Wavegen, Scotland's first wave power company

Or look at Siemens (SI), adds Tim Seymour. If you hear good things from GE’s infrastructure division, than SI would be appealing to me.

UNETHICAL

Ditching Klaus Kleinfeld as CEO of Siemens would be a genuine fresh start for the German engineering giant had his departure not looked like a hasty boardroom coup that ignored his record for turning the company around. Such a view seems unavoidable, since Siemens' supervisory board has no solid evidence that Kleinfeld is tainted by the corruption scandal that has engulfed the company. Siemens (ticker: SI) is widening its internal probe into suspicious payments, even as the company has become the target of a formal inquiry by the U.S. Securities and Exchange Commission, in addition to a criminal investigation by the Justice Department in Washington.