DSKE - Daseke: Expect Share Price Recovery On Improved Pricing Execution And Sentiment
Like several of our core holdings, Daseke (DSKE) got off to a rough start in 2018. It had a poorly executed follow-on offering in February that resulted in a 20%+ decline in share price during the roadshow, followed by a tepid 4Q report and the poorly received acquisition of Aveda, which was above historic acquisition multiples. We suspect that in a couple of quarters, investors will have a far more sanguine view about Aveda given what should be enormous earnings growth in 2018. In addition, we believe the acquisition provides meaningful potential synergies