Alan Brochstein, CFA
Contrarian, growth at reasonable price, management change, cannabis stocks

Gentex: Attractive Only When Looking At The Rearview Mirror

Gentex (NASDAQ:GNTX) has been a great long-term growth story, enjoying the proliferation of auto-dimming rearview mirrors in cars that now has become almost a standard offering 31 years after the company invented it and where it holds 88% market share in the 45% globally penetrated market. GNTX just made two big announcements that, taken together, should leave investors very cautious on the stock, including a sudden management change and a very large acquisition, its first in more than a decade. Further, near-term trends for auto sales remain depressed in Europe, the company's largest market, while the company's margins have been under pressure due to price reductions and unfavorable mix-shift. When GNTX, which has minimal short-interest, reports Q2 earnings...

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