Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Commercial Vehicle Still Idling

Unlike truck builder PACCAR (NASDAQ:PCAR) and commercial vehicle engine builder Cummins (NYSE:CMI), Commercial Vehicle Group (NASDAQ:CVGI) has yet to benefit the market's willingness to overlook tough current conditions in the trucking industry and transition to the recovery/rebound. But with about one-quarter of the company's sales coming from the construction sector, and construction-exposed companies like Caterpillar (NYSE:CAT) and Deere (NYSE:DE) still lagging, perhaps that's not entirely unreasonable.

Commercial Vehicle Group's new CEO is saying all of the right things. The company is going to focus on greater market diversification and greater customer penetration (selling more components to the same customers), continue to look for accretion deals, and aggressively extend operations in...

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