Turnaround stories rarely ever follow a smooth upward arc and Navistar (NAV)
is proving no exception. Management has laudable progress with cost
reductions, design improvements, and a generally more realistic approach
to running this business, and Wall Street has noticed - taking the
shares up about 50% over the past year.
As a look at the chart
will reveal, though, that hasn't been a stepwise progression and shares
have both risen and fallen sharply on quarterly results. This quarter
looks like no exception, as investors aren't liking the shortfall in
revenue or quarterly market share, nor the reduced EBITDA guidance for
the next quarter. Navistar shares look like an iffy value prospect
today, and investors who wish to own these shares now need to make their
peace with the above-average volatility that is likely stretch on into
2014.
Follow this link for the full article:
Navistar On Better Footing, But Still Shaky
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