Here’s one stock to sell, and one to buy

Article Excerpt

Long-time readers know that we constantly evaluate the stocks we recommend to see if they should remain in the Power Growth Investor newsletter. Here’s a look at two: one is a sell, and one is still a buy for aggressive investors. DOREL INDUSTRIES $5.25 is a sell. The company (Toronto symbol DII.B; TSINetwork Rating: Extra Risk) (www.dorel.com; Shares outstanding: 33.6 million; Market cap: $182.1 million; No dividends paid) makes a range of items: ready-to-assemble home and office furniture; juvenile products such as car seats, strollers, high chairs, toddler beds and cribs; and bicycles and other sporting goods. It appears that for the most part Dorel’s global supply chain is recovering, and demand, particularly for its bike and furniture products, was improving through April. However, the company’s units that rely on retail channels, including Dorel Juvenile, are still suffering from stay-at-home orders. Meanwhile, the company’s high debt is a major risk factor. At $527.4 million U.S., it’s a very high 3.9 times Dorel’s currently depressed market cap of…

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