The Panic-Proof Portfolio (Stockchase Research) ADF Group DRX-T PAST TOP PICK Sep 12, 2024

If you own it, you don't need to run away. Reasonable price. Would like to see improved dividend yield, better valuation. Nothing exciting jumps out, better opportunities elsewhere.

Has done very well, but is concerned about the concentration of its clients (steel structures). Control by the family isn't necessarily bad. DRX benefits from infrastructure.

Amazing chart over 2 years, not as attractive over last 2 quarters. High expectations, disappointment in numbers, investors started to exit. Ranks well in his longer-term screens, but not short term. He's watching, as there will be huge demand for infrastructure and infrastructure steel. 

If you hold it now, continue to hold. If not, watch for the inflection point between earnings and higher margins, as stock price should start to follow. This way, you might pay a bit more, but you'll potentially save yourself some downside.

It is an industrial engineering company. The stock ramped way up and fell right back down to an attractive multiple. The stock is not where it should be considering the fundamentals, valuation and growth potential. It is riskier and cyclical.