It seems both of their recent 1/4 releases were surprises to most of us. Not very credible management to not have seen this coming, IMHO.
Cheers,
Steve
Yes, both management teams are in the penalty box, for sure. NVEI lost a major customer and is struggling with growth. DND's sector is partially to blame, but it has run up its debt while at the same time is buying back stock fairly aggressively. Both are absolutely show me stories. NVEI is much larger and cheaper. But its sector has a lot more competition, and if it loses customers growth of course is going to come up short. Meanwhile, DND could see a sector recovery, and it has very strong pricing power, with very large market share in many of its divsions/areas. Thus, today we would be a bit more confident on DND, but because of the misses and negative momentum neither is too exciting as we head into possible tax-loss season towards year end.