Thursday, September 4, 2014

Seeking Alpha: Dana Holding Still Good, But Not So Cheap

Back in the spring of this year, I thought Dana Holding (NYSE:DAN) looked like a good name to own in the commercial vehicle components/parts space. Since then, the shares have outperformed a range of rivals and comps, including American Axle (NYSE:AXL), Federal Mogul (NASDAQ:FDML), GKN plc (OTCPK:GKNLY), and Cummins (NYSE:CMI) (a commercial vehicle comp, but not a competitor), but have lagged the S&P 500 in part due to weaker-than-expected demand for trucks in South America and weaker global demand for ag equipment. I still believe there's a solid margin improvement story here (one that management is delivering), leverage to emerging market growth, and the potential for value-adding M&A, but the undervaluation of the shares isn't enough to call it a must-buy today.

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Dana Holding Still Good, But Not So Cheap

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