Darspal S Mann
Long/short equity, growth at reasonable price, special situations, deep value

De-Risking Efforts Should Create Value For Meritor Shareholders

Meritor Inc. (NYSE:MTOR) stock, with negative equity, high debt and pension liabilities, may not look impressive at first, but even in a difficult equity and debt markets, the company is well positioned to create significant value for shareholders by actively working to reduce debt and pension liabilities.

Besides the weak global economy, credit markets and commercial vehicle market, Meritor, for the last two years, suffered as the company's primary military program began to wind down and expected to terminate by the end of this year. The problems have been well documented, but over the last few months, early signs of M2016 roadmap, three-year comeback plan launched last year, are both visible and encouraging.

The stock should benefit as...

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