It would SEEM (1) the economy is slowly turning around (2) which in turn would boost transport stocks (3) the age of trailers on the road remains near an average all-time high (4) product line diversification from Walker is healthy and on track (5) WNC is still projected to earn about $1 per shr in fiscal 2012.
A few reasons they are stuck....First they are in the transport business, and this sector is not doing well, with the like of Navistar holding them back. Trucks, engines and trailers are not the same business, but in the same stock category. With WNC I think many are tossing the baby out with the bath water...
Second, at this price, it is a small cap stock, which keeps the trading somewhat limited. Many funds and traders won't trade small caps due to liquidity and other issues. But, as a small cap, it has some room to run.
Their earnings announcement, that came out today, in my mind kicked butt. Outstanding results. Earnings, sales, and more importantly their margins are way up. They are focusing on good margin business and leaving the lower end to others. A good move when capacity is getting tight. The earnings show it is working. Also, remember, they don't have any direct exposure to Europe (maybe indirectly), and the US economy is growing, despite what you might think. Job growth is stuck, but 2% GDP growth in this environment is not bad.
It might take a few earnings cycles like this to pick up interest. Read the earnings report that came out tonight. Great stuff!!
The day traders who are keeping this stock in a define range, because of the low volume and the company is not doing enough to sale itself to big investors, for instance the stock was in green when the market sale off yesterday, the traders jumped in to cover their position, today the market is green but the stock is selling off early, because of the low volume and the shorts found an opportunity.
Usually the company is to blame for this type of action; they don’t care about the investor and by turn about the stock value!
Good luck to either longs or shorts.