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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