5. Dana Holding (DAN) designs, manufactures and sells automotive and industrial products.
Left for dead during the recession, Dana has mounted an impressive turnaround, shedding debt and bolstering cash. At the end of the third quarter, it held $1.1 billion of cash and $953 million of debt, for a net liquidity position. It announced last week that it had completed the reformation of its capital structure by replacing its secured term loan with $750 million of unsecured notes. Standard & Poor's upgraded the company's debt to BB- earlier in the week, a reassuring sign. Goldman has a $22 price target on Dana, expecting a 25% advance in the next year.
Dana's preliminary 2011 guidance missed Goldman's expectation on the EBITDA front. Goldman considers the $1.30 to $1.40 earnings per share guidance a positive, though. That range exceeded the Wall Street consensus estimate. If Dana is capable of hitting the high end of its range, its stock costs less than 13-times forward earnings, a huge 59% peer discount. Dana's stock has delivered impressive three-year annualized gains of more than 19%. It is up 4% in 2011.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV