Allison Transmission: A Table Pounding Buy
Summary
- The most recent financial results were middling in my view, better than last year, worse than 2019. The business cycle is a reality, though.
- The dividend is sustainable in my view. In spite of that, the shares are trading near multi-year low valuations, and multi-year high dividend yields. This can't last.
- Although I'm a fan of selling deep out of the money puts, I think the shares represent better long-term value at the moment.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of ALSN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I'll be buying another 500 shares this afternoon.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.