Thursday, December 07, 2006

Looking at AOS

Lately, with the markets on an uptrend, it has been more difficult to find "value" stocks.
At this time, AOS (A. O. Smith Corp.) comes close to attractive for the near future.
AOS manufactures electric motors and water systems for use in various residential, commercial and industrial applications.
Along with my previous choices, it is directly affected by interest rates and the building industry. I see a pattern here, and if I am right, there is a possibility of good returns in the next year or so.
The stock is trading today at 36.06, with short term support at about 34. Low debt, decent volume, good fund ownership, a fair dividend (1.9%); in addition, good earnings expected for '06 and '07, make this company worth considering.