Linamar Corp (LNR.TO)

Would be vulnerable because it's a manufacturer that exports to the US. Global sales footprint, with 15% being sold into the US. Factories in US are ~10-15%, with others in Canada and around the world.

Don't sell in a knee-jerk reaction on the basis of one variable that may or may not come into force. Stock prices already discount everything that's fundamental to the outlook of a company. Instead, think about valuation, whether it's easy to substitute the product, customer loyalty, effect of tariffs on USD, and how long the tariffs will last.

Frustrating. Earnings growing about 15% per annum, yet still trades well below book value. Global autos have been hated. As production comes back the industrial economy will pick up, though agriculture may be a bit sloppy. 

Auto parts could be impacted negatively by potential US tariffs. Rough technicals, 200-day MA very flat and moving down, with stock trading below that. 200-week MA also flat and starting to go down. PE always looks cheap, value trap.

It should have done better since it beat expectations and raised guidance. Next year's expectations are not in the double digit range. Earnings are 6 to 6 1/2 X  which make it attractive to hold or buy. He has reduced their holdings from overweight to neutral weight. They plan to introduce a share buyback.

Provides an opportunity. Extremely well managed. Very integrated into auto manufacturing, as is MG. Multiple is slightly less than MG's. Hold for the long term.

Parts go back and forth over the border so often, not sure how you'd keep track of the tariffs. Both Trump and Canada see auto parts as important to the US. Wouldn't be surprised if affected by tariffs less than other industries.

Sideways trading range, as have US auto parts. Nothing too exciting, unless perhaps as a value play. On the sidelines.

Believes is a good time to buy auto part manufactures due to all time low sentiment. Current share price is a bargain price given fundamentals. Not just auto part maker with agriculture exposure, and other parts of the economy. Leadership very strong, and is grown organically. Would recommend investing, and holding for the long term. 

See comments on Martinrea, similar. Consumer spending will be weak and inventory will climb in the car sector, but LNR has an industrial business, so it's not totally in auto sales. LNR is cheap but faces earnings headwinds in the short term.

Is very cyclical. See comments about Martinrea.

Starting to look attractive at these beaten-up prices. Not just EVs. Broad-based repertoire of products, including industrial scissor lifts, which will attract demand if economy continues to be resilient. Warrants a look.

It is in a long term uptrend but has volatility. There might be a buying opportunity but it is best to do it in legs: 1/3 at the support level, another third if it holds , etc. This is called legging in. He is not trading it now.

The high-end electronic Mercedes has an LNR electronic axle. Trades at 6x earnings. SkyJack is a dominant global business, opening plants in China and Mexico. Expansion possibilities, especially in EMs. Diversified. Company projects 10-15% earnings growth for the next several years. Will probably do a big share buyback. Yield is 1.62%.

New CEO has been at the company 30 years. He gives straightforward answers and knows his stuff.

Car parts hasn't done well as a sector. Its PE of 6x is cheap, but cheap for a reason.

About half profits come from non-auto businesses such as Skyjack and agricultural equipment. Auto parts are still under-earning from historical norms. 

Market gives a higher multiple to industrial manufacturers than auto parts. So as it becomes more diversified, potential for multiple expansion. He likes the diversification. If it continues to grow the fundamentals, the stock will eventually follow. Yield is 1.5%.

For comparison, MG trades at 7.4x 2024 expected earnings, despite missing expectations and giving weak guidance, and the stock came off. Whereas LNR beat expectations, raised guidance, yet trades at 6.5x.

It beat expectations last week. It has had solid organic growth as well as acquisitions. It also saw improvements in margins. Despite a pop in share price, it is trading at 7X this year's expected earnings. The industrial side is doing well and the parts side is turning the corner.  
Buy 5  Hold 1  Sell 0