There are no safe havens in the stock market. Every stock carries risk. But some less than others. This column features stocks that have shown one or more of the following characteristics: less volatility, better earnings, larger market caps, safe and increasing dividends. In these times of turmoil, our goal is to show readers better opportunities for investing with fewer risks.

April 27, 2010 - Ametek, Inc. (AME-NYSE) manufactures and sells electronic instruments and electromechanical devices in North America, Europe, Asia, and South America. The company operates in two segments, Electronic Instruments Group and the Electromechanical Group.

The Electromechanical Group produces brushless air-moving motors for aerospace, mass transit, medical equipment, computer, and business machine applications. It also offers specialty metal products, including steel and nickel clad alloys; stainless steel, cobalt, and nickel alloy powders; metal strip; specialty shaped and electronic wire; and metal matrix composites used in electronic thermal management. In addition, this segment supplies hermetically sealed (moisture-proof) connectors, terminals, and headers, as well as air-moving electric motors and motor-blower systems for manufacturers of floor care appliances and outdoor power equipment. The company was founded in 1930 and is based in Paoli, Pennsylvania.

2009 was a tough year for Ametek. Sales and earnings got hit. Revenues went from $2.531 billion to $2.098 billion. Earnings dropped from $2.30 to $1.91. But 2010 looks like a turnaround year.

Nine analysts see the company's sales reaching $2.20 billion this year, then $2.33 billion in 2011. For earnings, they see $2.22 in 2010, then $2.52 in 2011. Next quarterly report will be on April 27. Look for 51 cents for the first quarter, below the 55 cents achieved in last year's first. For the second quarter, anlaysts estimate 55 cents, above the 48 cents in last year's second period.

To enhance per share earnings, the company is buying its own shares. The board authorized management to purchase $143 million worth of stock, an increase in its initial authorization. The company has strong cash flow for the purchases, and its debt is only 38% of capital with $80 million maturing this year.

This is a stock that is solid and steady. It had one bad year when the global economy took a major hit. But world economies are healing. So is AME's bottom line. While there aren't any catalysts that will make this stock jump, neither are there any reasons to believe the price will suffer much damage. Earnings should continue to grow in a measured way but also in a predictable way which gives comfort to most Conservative investors. And while the stock is up nicely over the last year (low of $24.50 to a high of $43.71 recently), it's still below the all-time high of $53.10, set in late 2008 (all prices adjusted for stock splits).

More numbers: The dividend is 24 cents a share for a yield of .6%. Trailing P/E is 22.85 while Forward P/E is 17.30. Price to sales ratio is 2.21. Price to book is 3.00. Book value is $14.52. Return on equity for the last 12 months was a respectable 14.42% whle Return on assets was 7.26%. Operating margin was 17.45% and Profit margin was 9.81%. Total cash is $251.35 million or $2.36 a share. Total debt is $1.04 billion. Current ratio is 2.29. There are 106.72 million shars outstanding with a Float of 104.03 million. Insiders own 2.49% of the stock. Institutions have 85.90%. Value Line rates the company B++ for its Financial Strength.

Again, this is a solid, steady performer. Share price took an uncharacteristic dip in the latter part of 2008 as earnings started to uncharacteristically slide. That hiccup is cured. Earnings are back on track and management has cut costs, gone on the acquisition hunt, and is buying back shares. Conservative investors should find this stock of interest.

- Company Web site: www.ametek.com

- Ted Allrich