ArvinMeritor, Inc. (ARM)
The Company is a supplier of a range of integrated systems, modules and components serving light vehicle, commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets.
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Love the dividend!
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VALUE LINES - WORST PERFORMING STOCKS 13 WEEKS
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This stock is currently too high considering the exposure to the Heavy-Duty truck market which is going to have a very bad year after an incredible 2006. It won't be offset by the Light-Vehicle market which is pretty flat right now. This is a cyclical stock and I am waiting for the opportunity to get back in under $15.00 which should happen after a few more bad quarters of poor year-over year comps. Nobody seemed to notice in the most recent earnings announcement, but it always happens.
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I like ARM a lot. I've held it since the spin-off from ROK and I plan to buy more in the coming year as it dips (just as I will with Paccar) but management has already said they expect a rough 2007 and no ramp in results until q1 of FY 2008. Who am I to argue with management on that?


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