Aspen is tanking today but ADF Group is hanging in. Are there added risks or downward pressures you see going forward?
Thanks,
Brad
ASPN Q3 revenue missed expectations, but other metrics beat. The quarter was largely pre-announced, and the company raised its go-forward guidance. The stock will likely rise on the news Thursday. It does have EV exposure, and this could be vulnerable under the Trump administration. But it has a strong industrial base as well, and with its recent financing and loan and its 'still-a-go' battery plant, we think investors are prepared for what lies ahead. The stock has been cut in half in three months and we think that reflects the risks well now. DRX gets most of its revenue in the US. Its prior quarter was not great, but it has been winning new contracts. At its very low valuation, we think investors are also prepared here. We need to see how steel tariffs progress. Canada is making a push to Trump to 'go easy' on Canada, and the fear here could be worse than the reality. But there is risk under the new administration.
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