Magna Int'l. (A) (MG.TO)

NAFTA overhang has held the stock back. Just crossed below the 200-day moving average. Has a 10% growth rate. We’re getting late in the cycle. If we start to see a slowdown, and people renting cars, that will hurt Magna.

She doesn’t own any auto parts companies and sees the recent price declines as a direct reflection of the NAFTA uncertainty. If she was going to buy in this sector, she would look first at Magna, which is diversifying into the EU. She will wait until after there is clarity about NAFTA, even though that clarity will cause prices to rise (if the news is good) before she buys the stock.

LNR-T vs. MG-T. LRN-T has been overly beat up. MG-T is less exposed to the trade wars. He thinks LNR-T is a better buy.

It is a buy where it is despite NAFTA troubles which are baked into the stock price. But he would stay on the sidelines until the dust settles even though it might be higher then.

Trade fears have led to a sell-off. Trump doesn't believe in facts and is a loudmouth. Magna has good fundamentals, and the volatility creates a fine opportunity. Magna is a bargain now. (2.5% dividend, Analysts' price target: $87.65)

He likes it with 50 plants across North America, including Mexico. If NAFTA goes down, then Magna goes down. Trading at a low multple, but missed its earnings target in the last quarter. They are ready for the e-car revolution. He has a lot of faith in Magna.

A lot of its operations are in the US and in Mexico. In the next 1 to 2 years it is going to be a volatile name in his view. Over the longer time it is a very well run company. Overall car sales have been at record levels recently. This is the first treason to cause some volatility. They are becoming an outsourcing company where car manufacturers approach them to build more and more of their car content. He is not ready to pull the trigger right now during trade negotiations, however.

It'll be fine after the NAFTA talks. This sector generates good margins and cash flows. Despite the hype over the e-car, manufacturers will continue to go to Magna and its peers for car parts. He has long positions in Magna (and Martinrea). Stock prices in this sector are in a recession, so they can't get much worse.

It has broken a trend line that began in 2016 which is a negative indicator. He would get rid of this stock because looks like it is breaking down. He is bearish on this right now.

He really likes it at these valuations. It got on a bit of a tare recently. It is well diversified. Auto sales are slowing but they are diversifying their business into areas of the future. It is difficult to find a problem with its valuation. The recent sell off is due to aluminum tariffs. If your outlook is longer than 6 months you should do well.

Canada's largest auto-parts maker that's been through a very positive auto-parts cycle. But have we reached peak auto? Cars' lifespans are much longer now. Magna has a big proportion of business in the U.S., but tariffs are holding back these stocks--a big unknown. He prefers to see these stocks 10-15% lower before buying.

Longer-term trendline remains intact since mid-2016. We're testing it now. Auto parts makers have been under pressure. Saw a bounce and some weakness recently, but look at the trendline. Either take profits or buy on weakness.

He is worried about tariffs and NAFTA issues. They recently reported earnings that caused a hit to the stock price. He suspects in the next 2-3 months the stock might recover, but he is worried about trade issues globally.

This is a great company, well managed and well positioned in its industry. However, it is in the cross-hairs of Mr. Trump, which has created great uncertainty. The stock has been penalized because of that. Eventually the stock will drop so far that people will have to buy it, but maybe not yet. He doesn’t believe that Trump will put on the 25% tariff barriers but until that is resolved, the Canadian parts manufacturers’ prices will suffer. When it is resolved, these companies will come back, even though it is late in the cycle.

Difficult quarter, lowered guidance. Pounded pretty hard. Long-term it’s fine. Short-term, would be hurt by tariffs on cars. Skilled corporation, and they’re global. If you need someone to build a car for you, Magna can do that. They’re really good at it, whereas new entrants cannot, and it causes real value to be created. Share price could get bruised until the car part of NAFTA settles. (Analysts’ price target is $89.01.)