Monday, September 30, 2013

Seeking Alpha: Tenneco Really Needs To Start Showing Margin Leverage

I was fairly bullish on Tenneco (TEN) when I last wrote about the company back in January of 2012, as I thought the market would turn to this stock as a recovery trade and also bid it higher on the prospects for a growing contribution from higher-margin commercial vehicle business. While the trade idea has worked pretty well - the stock is up about 70% since my recommendation, and significantly outperformed BorgWarner (BWA), Cummins (CMI), and the S&P 500 - I think it might be time to tap the brakes here.

Continue reading here:
Tenneco Really Needs To Start Showing Margin Leverage

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