GEA Group Starting To Get Interesting

Down another 10% or so from when I last updated readers on the company, GEA Group (OTCPK:GEAGY) (G1AG.XE) has more or less lived down to my expectations as this company is largely marking time ahead of a management transition. Since that last update, though, the company has reported a decent quarter, has announced the new CEO, and has seen improvements across most of its end markets.

GEA Group still needs a lot of restructuring work, and that work is going to take years to accomplish. Still, I’m starting to think that the investment case is more interesting here. While I do incorporate business improvement expectations into my model (improvements that may not come), I believe that if GEA doesn’t make relatively quick restructuring progress, activist shareholders will push hard for a sale of the company. With a fair value of a little over $40/ADR, this may be a name for investors with the patience to hold a turnaround story to start looking into more closely.

Read more here:
GEA Group Starting To Get Interesting