Axalta opened a new center
On March 22, 2018, Axalta (AXTA) announced that it opened a new color solutions center in Frankfurt, Germany. The center will serve industrial customers in the EMEA (Europe, the Middle East, and Africa) region. The center will provide fast and customized services to clients in the region.
The center will supply Axalta’s brands like PercoTop, Acothane, and Corroless to its customers seeking small quantities below 100 kilograms.
Thomas Mangold, Axalta’s business director for the industrial liquid business in the EMEA region, said, “We wanted to create the right conditions that would enable our highly-skilled team of experts to color match and produce small batches, typically under 100kg. The Center also allows Axalta’s customers to test small quantities of new liquid products with very short lead times.”
Stock price update
Axalta’s stock price declined 5.6% and closed at $30.99 for the week ending March 16, 2018. The decline in the stock price caused the stock to trade 2.9% below the 100-day moving average price of $31.92, which indicates a trend reversal. The stock also had negative returns. On a year-to-date basis, Axalta has declined 4.2%. Sherwin-Williams (SHW), RPM International (RPM), and PPG Industries (PPG) have declined 0.25%, 5.3%, and 1.6%, respectively.
The latest short interest shows that the bearish sentiments on the stock have reduced marginally compared to the previous report. Axalta’s 14-day relative strength index of 47 indicates that the stock isn’t overbought or oversold.
Investors could hold Axalta indirectly by investing in the iShares U.S. Basic Materials ETF (IYM). IYM has invested 1.0% of its portfolio in Axalta as of March 16, 2018.