Sunday, April 19, 2015

Seeking Alpha: Dana Holding Needs To Ride Multiple Cycles

As someone whose body type is more manatee than mako shark, I've never had that much interest in surfing, but I do appreciate the skill that goes into finding the right wave and then riding it all the way in to shore. Maybe I'm stretching the metaphor a little too far here, but I think Dana Holding (NYSE:DAN) needs to do the same now, as investors are clearly concerned about the risk that supportive light vehicle and commercial vehicle cycles in North America are peaking, and other sectors are not in a state to pick up the slack.

I was lukewarm on the stock back in September, and the performance since then hasn't been great (down about 7%). Plenty of other auto and truck components companies have seen their stocks struggle to make much headway (let alone outperform), and I don't think there's anything particularly wrong here. While some of its valuation multiples suggest a relative bargain, and the company does have more going on in terms of product development than it often gets credit for, I don't see so much of a discount here to make this a must-own at a time when a lot of investors appear nervous about the sector.

Read the full article here:
Dana Holding Needs To Ride Multiple Cycles

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