Daimler Truck Is Still A Sell

Marty Popoff494 FollowersFollow5ShareSavePlay(12min)CommentsSummaryDaimler's Truck Holding AG's net income and EPS are down substantially over the past three years, and it now has the lowest ROA and ROE in its peer group.Demand for trucks has been weak for several years. Structural changes in the economy mean that this trend will continue for the medium to long term.In the last month, transportation indices and the equity of its competitors have sold off by significantly more than Daimler Truck Holding AG has. It now looks expensive.Arthur Kaszuba/iStock via Getty Images Transportation stocks have been hammered in the past month. Graph 1: Recent Price Action - The Transportation Sector For nearly two years, I have consistently recommended that investors be underweight Original Equipment Manufacturers (OEMs) in the heavy-duty truckThis article was written byMarty Popoff494 FollowersFollowMarty Popoff has over 20 years of capital markets experience, as a trader, marketer and in a pinch, structurer, primarily in the fields of Government and Corporate Bonds, Interest Rate Derivatives, Credit Derivatives, and Securitization. He has spoken at many conferences and taught Risk Management at the graduate level. From time to time he writes about topics that interest him. He often feels that investing in the markets takes a leap of faith.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.