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

He kicks himself for not buying this years ago, despite the recent uncertainty related to NAFTA negotiations. He is not keen on holding auto parts manufacturers right now. Management is top notch, but it is not a sector that is fairly valued. He would wait for better value.

The PE is still only 8-9 times earnings. He likes the space they are in. They are well positioned in the driver autonomy space. It is at a great valuation. (Analysts’ target: $90.08).

They are threatened by tariffs, which explains why the stock has sold off. They have a big, diversified business, so long-term the tariffs don't make an issue. If you're a short-term investor then there's a lot of uncertain. If there is a trade deal, then the stock will bounce back. If you're short term or worried, sell; if long-term, hold; if you own a partial positioN, then buy it in tranches.

He thinks it will be worth around $100 in the future. It is a fantastic business, well run but the negative is the trade wars. He thinks interrupting trade by Trump would be a nail in his coffin. But the auto cycle will turn over in the next 3 to 4 years.

This is right in the middle of his “zone.” It could go up or down from here. His model price is $121.13, but this is a cyclical stock near the end of the cycle, so it is unlikely to reach or hold that price. He would buy at $71 and sell at $98. At this price, he would do neither.

Has a long runway of growth, but has been beaten up by NAFTA fears. It's pulled back from its recent all-time high by 10%, but it's making a ton of money and is preparing for the next generation of cars, including self-driving ones. Trading at only 9x forward earnings. (Analysts' price target: $89.35)

Be a little cautious of anything in the automotive area, until dust settles on the tariff question. Magna is on both sides of border, and in Europe. Likes it, one of best managed auto companies in world. Probably one of the best of all the parts makers. Holding this stock long-term has paid off for investors.

He does not own any auto stocks. He says this has held up better than other competitors, like Linamar (LNR-T). He thinks it is because of its international diversity. It is a hold right now, due to the recent tariff rhetoric.

They made a $300 Million acquisition in Italy. It is a modest sized acquisition for them. They have the integration capabilities to do this type of acquisition. Don't put much stock in the pull back today. They are well diversified geographically. He does not think tariffs on autos are actually going to happen.

Linamar versus Magna. He likes this space and owns Magna (MG-T), which looks much more attractive on safety issues and overall business plan. He would sell Linamar (LNR-T) in favour of owning Magna.

It's 40% European, so whem Trump threatens tariffs on Euro cars, there's some impact here. Perhaps dips caused by Trump's tariffs threats may be buying opportunities, but Trump keeps pressing this issue which makes him nervous.

Good time to take profits? Cautious, because has significantly outperformed Martinrea and Linamar, based on its forays into autonomous vehicles, joint Chinese ventures, and partnership with Lyft. All these are potential financial positives in years down the road. Not expensive, but there is a risk from NAFTA, so yes, take some profits.

Free trade and tariff discussions has been an overhang on this stock. Makes more and more money and continues to gain market share. Continues to develop technology. Super cheap stock. 2% yield. Produces a lot of value. (Analysts’ price target is $90.19)

(A Top Pick May 17, 2017. Up 45%). Magna is invested across many different manufacturing platforms. They are no longer just in auto parts. They do complete vehicle assembly and have a foothold in autonomous vehicles and AI. They have an integrated factory platform across North America with almost equal numbers of plants in Canada, the United States and Mexico. He thinks they are trading at a modest price to earnings ratio, like all other auto companies. They just aren't getting enough respect.

They're diversified geographically enough to weather Trump's anti-Canada rhetoric. They're globalized and have gotten into full-vehicle assembly, assembly cars well. Magna will ride through the Trump storm and there will be opportunities to pick up this stock.