Sustainable Free Cash Flow
Long/short equity, value, special situations, growth

Allisons Big Move Higher Looks Sustainable

Small Public Float; International Potential

Allison Transmission (NYSE:ALSN) became an independent entity in 2007 when Carlyle and Onex purchased the company for $5.6 billion from General Motors. In March of 2012, Carlyle and Onex took the company public. Since the initial public offering, Allison Transmission has continued operating as a top developer and manufacturer of fully automatic transmissions for medium- and heavy-duty vehicles. Their financial performance is highly correlated to macroeconomic conditions. Although the stock has increased approximately 25% over the past year, the potential for additional growth exists. Onex and Carlyle are still heavily invested and control the operations of the firm. The two combined hold approximately 70% of the equity and have strong track records in...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details