Buys DAN small at $10.25.

blog dan daily 7-7-2016

Dana Holding misses by $0.09, misses on revs; guides FY16 EPS in-line, revs in-line  (14.27)
4/21/2016, 7:02:24 AM ET
  • Reports Q1 (Mar) earnings of $0.34 per share, excluding non-recurring items, $0.09 worse than the Capital IQ Consensus of $0.43; revenues fell 9.9% year/year to $1.45 bln vs the $1.51 bln Capital IQ Consensus.
  • Co issues in-line guidance for FY16, sees EPS of $1.65-1.75, excluding non-recurring items, vs. $1.70 Capital IQ Consensus Estimate; sees FY16 revs of $5.8-6.0 bln vs. $5.84 bln Capital IQ Consensus Estimate.
    • Capital spending of $320 to $340 million;
    • Free cash flow of $120 to $140 million.
    • Courtesy of Briefing.com
Dana Holding to open a new axle manufacturing facility in Ohio  (12.27 +0.03)
5/9/2016, 12:36:37 PM ET
Dana plans to expand a recently constructed 100,000 square foot facility on the property to nearly 300,000 square feet. Over the next few years, the company plans to invest approximately $70 mln and employ more than 300 associates by 2020.
Courtesy of Briefing.com
Dana Holding subsidiary proposes to issue $375 mln senior unsecured notes due 2026 in a private offering  (11.30)
5/24/2016, 7:09:57 AM ET
Dana intends to use the proceeds from the 2026 Notes offering to redeem all of its 2021 Notes, to pay related fees and expenses and for general corporate purposes, which may include repayment of indebtedness.
In spite of the 2026 Notes offering  DAN’s debt is a little heavy but I have seen much worse.
The biggest problem is a 10 percent loss in sales in the past year. This is a well regarded company with all of its customers.
Targets are $12.50,$14.50 and finally $18
Stop price is $9.74

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