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

He thinks we are still midway through the auto cycle, and we can continue to do well in this space. They have done a lot of shareholder friendly actions through the years. On a valuation basis, it is cheaper than its North American peers. He likes this.

(A Top Pick March 24/14. Up 29.01%.) He still really, really likes it, and if he did not own it, he would be buying it. A world-class company. The #4 auto parts Company globally. It benefits from the globalization going on. They have a great, great balance sheet, one of the most under-levered balance sheets that you will find. Growing stream of free cash flows and earnings. Trading at only 9X next year’s earnings with a solid and growing dividend yield.

They had a 2 for 1 split today. It should not have a big impact on the price. It is tied into the US economy. It is cheap on a PE ratio but it is at the high end of its range. It is a popular stock and could be susceptible if we get more of a market correction.

There is still value here. Because they are big in the Euro zone you get the advantage of the low Euro which their costs are in. Historically stocks bought before a split get a momentary boost, but it is not durable. It you are long term it has little effect.

Splitting two for one this week. We are in the 7^th or 8^th inning for cars and 4^th to 5^th for parts. He is not looking at any other auto companies than GM-N which he owns. This would be his number one Canadian auto parts name, however. You could hold it for the long term.

2 for 1 stocks split next Thursday. He thinks they don’t mean anything. Auto and auto parts companies are cyclical and never get the big multiples. It is a very well run company.

Top quality auto parts company. Tremendous growth prospects. The valuation is something you have to struggle with as you put new money to work. Good European exposure. They can continue to make some decent profits here.

If you think Europe is just starting QE and we are just finishing, that is going to help the stock extend the car cycle. He owns Martinrea (MRE-T) instead, which is quite a bit less expensive. This group is still fine for another couple of years.

The chart shows some congestion around $127, and it broke up through that in February. Currently it is coming down and this might be to do a test. That would be a very, very healthy place to buy it as long as it can hold the $127. Great looking chart.

This is basically buying exposure to the automobile industry globally. One of the biggest winners from low energy prices is the consumer. This company sells its gear into auto manufacturing in 29 countries with the US being about 50%. He really likes the auto industry. This company is doing a great job and beat the most recent estimate by 12%. A great way to participate.

This has done a really, really good job. Car sales are running at a pretty good number here. In North America he thinks car sales can continue to chug along. Elsewhere in the world it is going to become more problematic as we have the crises going on. Doesn’t think you need to own at these levels.

This auto parts giant depends on growing demand for cars, a better economy and low interest rates. He believes the next 3-5 years are going to be very much like the previous 3-5 years, which means a pretty normalized level for car sales. There are better car registrations in Europe now, so that is a good sign. US economy is up and car sales have been very strong. This company supplies auto parts to everybody. Valuation is reasonable. He would buy this on pullbacks.

The trend on this is upwards. It is going to go higher. On this one, he would key up bellwethers in the US, such as Autonation (AN-N). Using the price channel that this formed, as long as it is not violated, you are probably okay with the rest of the group. The sector is trying to go higher.

Very strong auto parts manufacturer. Doesn’t see a tremendous amount of upside in the stock. In the near term there is going to be some choppiness with the monthly sales numbers, which might give you better entry points.

(A Top Pick Jan 16/14. Up 30.83%.) He saw continued margin expansion, continued top line growth, capital deployment to buy back shares and increase of dividend. This is all still very real. Still trading at a discount to the group.