Change Is Coming At GEA Group, But It May Take Time To Arrive

When I last wrote about GEA Group (OTCPK:GEAGY), I said there were still meaningful risks that the company could disappoint investors even further… and that's exactly what they have done. With yet another weak quarter in the books, and no credible prospects for a near-term reversal in what is now a long trend of disappointment, this is a tough stock to own today.

There are some pieces of good news, though. First, the management that steered GEA Group into this mess is on their way out. Second, the underlying assets and operations still have value and, I believe, can generate attractive returns with the right plan/management in place. Although the shares still look undervalued after once again lowering expectations and could have significant long-term turnaround potential, investors buying/holding today should probably accept that it's going to be a year or longer before there's real change at GEA Group.

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Change Is Coming At GEA Group, But It May Take Time To Arrive