A HEAVY HITTER IN HEAVY INDUSTRY

Over the years, SPX (SPW) transformed itself through acquisitions into a global multi-industry manufacturer--and it has paid off handsomely. SPX's profit in 2004 was 30 cents a share. By 2007, earnings had climbed to $4.98, and in 2008, they may reach $6.50. The stock has soared to 107.79 from 68 a year ago and could hit 120 this year, says Nicholas Heymann of investment firm Sterne Agee. He sees SPX earning $8.10 a share in 2009. Some 50% of sales are non-U.S., and 51% of its products cater to the infrastructure market. SPX's industrial products include power transformers, aerospace components, heating and cooling systems, pumps, and valves. Erik Antonson of Value Line says the need for power and infrastructure in markets like China will continue to spur business and boost profits.

Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.