Invest in innovation

Both science and technology play a vital role in maintaining the competitive edge—and growth—of individual industries. Policymakers in developed and developing countries are constantly striving to attract, cultivate and retain knowledge-based companies that foster productivity and enhance their participation in the global economy.

Scientific and technical instrument manufacturers reported rates of product and process innovation that were at least double the U.S. manufacturing sector average, according to The U.S. National Science Board’s recently issued study, Science and Engineering Indicators 2012.

The companies in this sector help improve the efficiency and quality control of manufacturing and testing massive quantities of innovative products.

We are constantly witnessing the impact of developing technologies on our everyday lives. The companies comprising this sector are equally worth watching as investment opportunities.

Their products and systems spread across numerous industries and have multiple applications, be it scientific research; microelectronics; aerospace defence and security; life and health sciences; or industrial manufacturing.

Products produced within this industry include scales used in laboratory, industrial, packaging, logistics, and food retailing applications; analytical instruments for use in life science applications; and reaction engineering and real-time analytic systems for use in drug and chemical compound development.These include mass spectrometers, electron microscopes and magnetic resonance imaging (MRI) equipment.

Several stocks in this industry are in Uptrends.

MTD(Mettler-Toledo International Inc.) manufactures and markets weighing instruments for use in laboratory, industrial, and food retailing applications.The company also supplies several related analytical and measurement technologies, and provides its services to customers primarily in Europe, North and South America, and Asia.

SmarTrend shows shares of MTD in an Uptrend as of January 6, 2012 at $155.63. In late January, MTD was trading at $174.36, representing an increase of approximately 12% in an approximate three-week timeframe.

A (Agilent Technologies, Inc.) provides core bio-analytical and electronic measurement solutions to the communications, electronics, life sciences and chemical analysis industries. Operations include electronic measurement, bio-analytical measurement, semiconductor and board testing.

The Agilent Uptrend was also issued January 3, 2012, when A was trading at $36.37. By late January, trading at $42.60, A shares showed an increase of about 17%.

CGNX (Cognex Corporation) designs, develops, manufactures, and markets machine vision systems. The company’s systems are used to automate the manufacture of a variety of discrete items and to assure their quality.

Cognex has regional offices located throughout North America, Japan, Europe, and Southeast Asia. CGNX is in an Uptrend called by SmarTrend on November 30, 2011 at $34.65. With a price of $40.66 in late January, this stock has increased about 17% in the two-month period from when the Uptrend alert was issued.

MTSC (MTS Systems Corporation; see chart, below) manufactures computer-based testing and simulation systems for determining the mechanical behaviour of materials, products, and structures.

The company also manufactures measurement and control instrumentation products for the automation of manufacturing processes.

The Uptrend alert for MTSC was identified more than three months ago, on October 10, 2011, at $33.48. In late January, MTSC had a return of more than 36%, trading at a price of $45.61.

Although the outlook for the Scientific and Technical Instruments industry segment is positive, we need to stay alert to sharp changes due to factors both within and outside the industry itself.

As with all investing, and especially in these times of rapidly shifting market trends, it’s important to use a trusted investing system that will provide you with the alerts you need.

Chip Brian is founder and CEO of SmarTrend®. If you wish to follow any of these stocks, and fi nd out when their trend changes direction, try a 14-day free trial at www.mysmartrend.com.