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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