I've been watching this company since May when it was trading in the low $3s. It's been a roller coaster ride since the spring. It was trading at $1.13 (this stock got as low as 29 cents in March!). Now it's well over $6. I've missed a huge gain by watching from the sidelines, but I still think that there's money to be made, if not in this stock, but the sector in general
A lot of good things have gone right for AXL in the last three months. They got a credit reprieve and GM is going to give them $210 million. Credit Suisse just upgraded them.
I know that auto manufacturing in this severely crippled, but it's not going to die.
DAN, ARM, and TEN deserve a second look. Beware, these companies have huge losses, little cash flow, and balance sheets that are still evolving. Still, all these companies are trading at fraction of sales.
Profits will not determine the short-term viability of these companies. Profits are a distant dream for these firms. Only one thing will move these stocks: restructuring. Positive news of covenants and credit facility extensions will lead to analyst upgrades and an uptick in investor sentiment. Monitor the price of credit default swaps.
This is a test with a huge curve; a 60% will get you a B+.
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