Let’s talk about American Axle (NYSE:AXL).
I've been talking about this for two, three years … but I still like it. The chart looks absolutely phenomenal. They don't use their American part anymore, because it has really become a global play.
Let me give you the negatives first. Execution has been sloppy -- in the last three quarters they missed the Street two times -- and there's been a little bit of margin pressure.
But this is what I love. They are outpacing the industry, that means they are taking market share. In fact, over the next five years, they are going to take a whole lot of market share. I think some of the costs they are spending on now will pay off very well down the road. Their sales have been pretty solid -- 13%. Again, they have to bring the SGA costs down.
I love the fact that their backlog is getting up there really nicely. Take a look at the chart, I think it can get to $29, $30. A breakout takes it another 20% higher. It's not a trading vehicle, but I love the way it acts and I think it will be a good fit for most 401(k)s.DISCLOSURES