Share tips: Swiss innovation going cheap

With state-of-the-art technology across a broad range of territories, this power-grid maker gets the thumbs up from Paul Hill.

The recent equity sell-off has forced speculators to dump stocks on to the market at distressed levels. For long-term investors, this creates opportunities. Take ABB, Switzerland's power transmission and factory automation champion. It is the world's largest maker of electricity grids and a leader in high-voltage direct current (HVDC) which can significantly reduce power loss over transmission lines.

However, its shares have dropped 30% in the past year even though it has no credit worries. In May it issued $1.25bn of ten-year paper offering a yield just shy of 3%. That's less than half the level being paid by Italy and Spain.

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Paul gained a degree in electrical engineering and went on to qualify as a chartered management accountant. He has extensive corporate finance and investment experience and is a member of the Securities Institute.

Over the past 16 years Paul has held top-level financial management and M&A roles for blue-chip companies such as O2, GKN and Unilever. He is now director of his own capital investment and consultancy firm, PMH Capital Limited.

Paul is an expert at analysing companies in new, fast-growing markets, and is an extremely shrewd stock-picker.