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

Sentiment May Be Gaining On Allison Transmission

I was bullish on Allison Transmission (NYSE:ALSN) in early October ("Allison Transmission A Stand-Out In Multiple Ways"), and I cannot complain about the 18% move since then as it has outpaced the S&P 500 and other truck component companies like Cummins (NYSE:CMI) and Dana (NYSE:DAN). Management has recently confirmed that improving North American truck orders are starting to flow through to their order books and that the fracking market is coming back to life.

I still really like the long-term idea of Allison as a share-gainer in the commercial vehicle transmission market, but I am a little concerned that analyst and investor enthusiasm is running ahead of the underlying vehicle markets. A...

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