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

Has a $150 US price target on it. Trading at 11.6X PE 2015 estimates, versus their peers at 13.4X. Sees 20% earning per share growth.

The automotive industry has done a lot better over the last few years. As a result, there has been good appreciation in the auto suppliers. Since we have seen such great appreciation in the auto sector, unless it keeps going and growing, he doesn't see a whole lot of potential going forward. If you own, consider taking profits.

He doesn't have any stake in auto stocks right now. His strong feeling is that there may be oversupply in autos in the US right now. He feels auto parts manufacturers could continue to be under some pressure.

Has done quite well in the bounce back in the Canadian market and is almost back to its old highs. Auto production in North America is back to peak levels, so they don't have a tremendous upside in North America. Europe is actually where the operating leverage is. Their margins are very depressed and the content per vehicle is much lower than in the US. Wouldn't be buying at this level.

He is a bit of a bear on the auto sector. It has had a big run and the auto related stocks have had their run. Thinks they are in a topping process. He wouldn't go near them. Chart shows there was a peak in August where it made a new high. Stocks have dropped and he expects it to rally close to its old high and then fall.

Earnings were terrific. Thinks their prospects are very good. Has a hard time explaining the volatility, but it may be a little related to the weighting they have in Europe and the fears about Europe being softer. He thinks that if you have strong earnings, you can solve a lot of problems.

This has a great chart. It shows a drop recently, followed by a little bit of breakout. If it breaks the low of $102-$103, it is probably going to go lower, but it bounced off that support. You need to have it break out and test. It is still too early to tell. Watch for it to go higher before buying.

Was $125 when the US economy was rolling full steam, then MG-T came down to $107. But what has changed. The US economy is still rolling. He is a huge believer in MG-T. They do a lot of European business and there is a school of thought that says they never got out of recession. Car sales are still cooking along, though.

Doesn't own, but does like it. In North America, as key indicators improve, demand for cars is going to continue at a very strong pace. Age of the existing car inventory is still far too old relative to what it has been. With the constant ongoing demand for new cars, this company will benefit. Despite Europe's dismal outlook at the moment, seems to be doing not too badly in the car business, so this company will benefit from that.

An attractive time to look at a company like this. Valuation is still reasonable at around 10X earnings. Auto sales numbers in North America and Europe haven't been that bad. They like to give earnings back to shareholders in the form of buy backs or dividends. Prefers Linamar (LNR-T).

He sees 23% earnings-per-share growth and 11% free cash flow growth over the next couple of years. Has modeled them buying back almost 13% of their float over the next couple of years. Q2 was a beat. Margins are improving. There is a European story, but he is somewhat constructive that Europe will make it work. Cheaper than its peers. Yield of 1.56%.

Bought some today. It is down significantly over the last 7 weeks. He knew there were going to be a lot of cars sold and therefore a lot of car parts. There are another 2-3 years of good growth in North America in the auto industry and then after that it will repeat in Europe. A PE of 10 so it is a perfect value stock. Earnings growth exceeded the growth in the stock.

It has done a great job since the 2008 selloff. One of the most diversified auto parts sellers. The opportunity for growth is in China. They are going to turn around their European operations where they have lower margins. He likes what management is doing with capital. They bought back close to $2 billion in shares. He sees an 8% return so he would add to a position at a lower price point and hold for the long term.

If you plan to hold this for a couple of years, now would be the time to buy it. If you are concerned with market volatility, then buy a part position. The things he likes about this company are unchanged. Low interest rates mean that people have the ability to buy cars. They benefit from all car sales. They are adding plants around the world. Balance sheet is perfect. Low valuation.

This had a negative transit at $112, so if you were an owner of this, you would have been out at the $112 level. He worries that this could fall all the way back to $81.63. He would not be a buyer until it had a positive transit at $112.