
TSE:MG
The car cycle has always been a cyclical business. Thinks we are now in the process of working off the pent-up demand. We are running around 16 million units which is a little bit above the historical averages. While there is a growth in employment income, there are still an awful lot of unemployed people in the US. Feels we are in an advanced stage of the car cycle. Traditionally this company has been a good manufacturer.
Made some great purchases through the recession. It got them more market share. They sell globally and are doing well in North America. Numbers getting better in Europe as well. They have virtually no debt. They could take on 2-4 Billion more debt to make an acquisition. They could grow earnings. Trades at a discount to other parts companies. Continue to buy it.
Has held this for quite a long time and it has done extremely well. Has a lot of respect for it as a leading global auto parts company. Had a great run over the last year, but despite that, it is still cheap. Trading at about 10.5X 2015 earnings. Pays 1.5% yield. Clean balance sheet. Growing their business in all areas of the world. Europe looks like it has finally bottomed and is coming up. Has a target of $130.
A Top Pick (May 2/13. Up 96.67%.) Still likes this. Thinks it is going to $140 over the next year. World’s 4th largest auto plant manufacturer. Management is doing a great job.