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Compiling comments that experts make about stocks while on public TV.

2017-10-12

Opinion for Magna Int'l. (A) (MG-T)

Signal Price Bias Subject Owned
WAIT $67.810 OPTIMISTIC NORTH AMERICAN - LARGE & ETFs Yes

Cheap. Bought his holdings when it was closer to 7X forward earnings, but it is now closer to 8.5 X. A very cyclical industry. Be prepared to own it during an expansionary period, and Sell before an economic downturn happens. There are some questions as to what will happen with changes to NAFTA, but so far it has held up well. Just announced they had joined a conglomerate with BMW and Intel to develop a fully autonomous driving system by 2021. Because they have such a wide portfolio of products and services, automakers are going to consolidate purchases and go with a name like this, rather than the 2nd or 3rd largest type of company. Not sure he would buy at this valuation, but maybe let it calm down a little. 2% dividend yield.

Stan Wong
Director & Portfolio Manager, Private Wealth Management, ScotiaMcleod http://www.stanwong.com

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