Jonathan Selsick
Registered investment advisor, portfolio strategy, hedge fund manager

Navistar's Deal With Volkswagen Is Good For Volkswagen But May Not Be Enough To Cure Navistar's Woes

Background Navistar International Corporation (NYSE:NAV) has had a wild ride over the past year, going from a $38.05 per share two years ago down to $5.78 in one year, and recovering back to around $32 over the past year, with a notable double in the past four months on news of the proposed alliance with Volkswagen Truck & Bus ("VW"), a wholly owned subsidiary of Volkswagen AG (OTCPK:VLKAY). (click to enlarge) While Navistar has made significant operational and cost-cutting progress since abandoning its engine technology in 2012, top-line growth has been declining every year, and we will argue that given the scale of its problems, particularly with its balance sheet, the optimism around the VW deal ...
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