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Dana Holdings Pick (DAN)

|Includes: Dana, Inc. (DAN)

I've been watching Dana Holdings for awhile now, and feel it is appropriate to call it at the present $11.60 level. With a 2% dividend yield, robust FCF, and growth intiatives in place I'm a bit confused as to the market valuation here, and feel it is a safe bet for reasonable appreciation in a 18 month time frame. Projected financial performance guided by the company itself suggests undervaluation. It might not take off for 50%, though it's possible, but 20% in this environment is becoming a bit harder to come by in a safe manner. They exist in a solid industry and have a considerable pile of cash, 10 year senior notes just issued at a non-oppressive 6.5%.

Risk reward seems favorable.

Price as of May 24th before open, $11.60

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.