Wednesday, April 15, 2015

Seeking Alpha: Allison Transmission Hits Pause

As I have written in prior pieces, stocks like Allison Transmission (NYSE:ALSN), Cummins (NYSE:CMI), and BorgWarner (NYSE:BWA) get more interesting to me during those periods where investors start worrying about the near-term growth environment. All of these companies are, at least in my opinion, proven winners in the vehicle components space by virtue of a long-term focus on innovation and responsible year-to-year management of the business.

It would look as though Allison is heading into one of those pauses. The shares are up about 7% since my last piece, putting them in the same "meh" performance group as Cummins, BorgWarner, and Tenneco (NYSE:TEN), and management's guidance back in February for the full year was not inspiring, as revenue may decline this year. While there is certainly risk in buying these shares ahead of earnings (due in about two weeks), I think Allison still has attractive long-term growth potential and a price at or below the low $30's should be a good opportunity for long-term investors.

Read the full article here:
Allison Transmission Hits Pause

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