VOLAF - AB Volvo: One Time When I Disagree With The Algorithm
2024-06-05 13:35:20 ET
Summary
- AB Volvo has elevated financial and operational leverage at a time when new orders are declining.
- AB Volvo's shares do not fully price in a minority discount. Its largest shareholder treats it as a cash cow, using it to fund higher growth companies in its portfolio.
- Its second-largest shareholder, Geely Automotive Holdings, recently sold $1.32 billion of AB Volvo's B-shares. More sales could follow.
AB Volvo (publ) ( VLVLY ), often confused with Volvo Cars , is the second-largest manufacturer of commercial vehicles in the world. Its operations are global in nature and it produces and sells commercial vehicles under the following brands; Volvo, Volvo Penta, Rokbak, Renault Trucks, Prevost, Nova Bus, Mack, and Arquus.
There's a lot to like about AB Volvo, and as per Figures 1 and 2, the Seeking Alpha algorithm loves it. However, in my opinion, AB Volvo and the ADR that tracks its Swedish common stock, VLVLY, is a Sell ....
AB Volvo: One Time When I Disagree With The Algorithm