Gordon Reid Dana Holding DAN-N TOP PICK Oct 16, 2023

(Top Pick May 9/12, Up 30.36%)

This is a 2^nd derivative play off the auto recovery. US auto industry is moving back to a normalized rate of production. Also, the average car in the US continues to get older and older and is currently around 11 years old.

Auto parts. The auto industry is continuing to recover and thinks they will do well into the future. Have a broad cut-out of very good customers. Coming out with products that, from a technology standpoint, are better. They are lighter, which has implications from a fuel economy standpoint. Trading at a nice multiple and it has growth opportunity.

(A Top Pick Aug 20/14. Down 29.81%.) In the car parts business, and one of the very big effects is the China play. China represents something like a 3^rd of the total car market. He still likes the company very much. Trading at about 8X earnings. They have bought back a lot of their stock. Backlog is growing quite dramatically, but they have a couple of headwinds. One is China and the other is South America, but this will turn over and change.

At this point in the cycle, you can't buy an auto parts maker, even a good company.

They were lost in the wilderness a few years thanks to supply chain woes and recession fears, this has shot up 37% since end-May. They just reported a solid quarter: beater revenue, huge earnings beat and raised their full-year forecast. Shares hardly budged because they had run up so much before the report.

Auto parts company that supplies after market sector. Highway and road supplier will be good when infrastructure spending kicks in. Strikes not good for business. Auto sector not trading well, but will stick with the company. Believes better times ahead for the company. Has potential within the next year to ~3%. Earnings power around $2-3/share. Once auto business recovers, will also be good for business. 

They're in a tough space. Still holds it. It's a timing issue. The end market has been weak given the EV buzz. There's talk of them being bought out. They may sell their highway division.