ADF Group Inc T.DRX

Recent Decline

[retiredcf]

Small caps can be weird traders, certainly. The reaction to the insider sale seems overdone to us. It was the company that bought back the shares, and this implies management also has conviction. Plus, the insiders still have more actual money at risk even with the sale, because of the 251% gain in the stock over the past year. There has been no negative corporate news for DRX and estimates/outlook have not changed at all. It is still a riskier small cap company, but at 9X earnings we think it looks good. To get to its prior high would imply a 54% move, and we would be cautious not to assume those types of gains, but certainly our conviction remains strong here. (5iResearch)

[retiredcf]

And this. GLTA Growth Model Portfolio Increase ADF Group (DRX) to a 2.5% Weighting Trade Rationale - DRX is a major fabricator with expertise in complex structural steel with high-tech requirements. DRX is involved in the design, engineering, and installation services for steel structures. It recently saw a pullback in price, and we feel it remains attractive at 9X forward earnings and