While I thought that the shares of HollySys Automation Technologies (NASDAQ:HOLI) might have been getting ahead of themselves back in August of 2014,
the shares managed to go up another 10% or so before disappointing
fiscal second quarter results and concerns about the outlook chopped off
about one-third of the company's market valuation.
HollySys
shares have rebounded about 20% from the recent low, but there are still
some real questions about the near-term outlook. Investment in the
company's largest automation sectors has slowed significantly and
management's efforts to address higher-growth sectors and new markets
will take time to bear fruit. Elsewhere, the potential of new rail
products is matched against worries of substantially lower rail
investment spending in the next couple of years.
Continue here:
HollySys Needs To Ease Concerns Over Slowing Automation And Rail Orders
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