Seeking Alpha: Commercial Vehicle Group's Turnaround Is Slow And Wobbly

Investors in turnaround stories need to have patience, but Commercial Vehicle Group (CVGI) is certainly testing the patience of its shareholders. The company's new CEO needs to be given enough time to let his turnaround plan bear fruit (he's been on the job for less than six months), but it's frustrating as heck to see CVGI go nowhere this year while Cummins (CMI), PACCAR (PCAR), and Allison (ALSN) are all up about 20% and Modine (MOD) and Navistar (NAV) are up more than 60%.

CVGI is currently sitting in the middle of some uncomfortable trends. While Class 8 truck orders have improved, build rates still aren't all that strong and the industry-wide shift away from sleeper cabs is not a positive for the company. Likewise, the company's diversification efforts into end-markets like construction and agriculture is running smack into sluggish trends in those markets as well. I still believe that Commercial Vehicle Group remains undervalued relative to its future prospects, but this is not a stock for investors lacking in patience or those who cannot afford to be wrong about a speculative turnaround pick.

Please read more here:
Commercial Vehicle Group's Turnaround Is Slow And Wobbly