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

He missed the auto parts stocks. Thinks this has more upside because the auto cycle remains healthy. Have a big presence in Europe. As the European economy starts to come back, they will benefit there as well. They report in US$ and as the Cdn$ continues to suffer, their earnings will do better.

Had a huge move over the last year and half.

Has been looking for an opportunity to buy into either this or LNR. We could see a stock split here in MG. The question is what is the underlying value of the company. Prefers Linamar, which he owns. MRE-T has had a couple of stumbles recently.

He bought a few months ago. He is a buyer. What we are seeing is a big step function up in autos. Huge growth in US and Mexico plus potential to grow in Europe. Don’t sell here.

Thinks there is still growth in auto stocks. There has been a big run up, but we have come out of a very big low. Auto sales are going to at least where they are or trek higher. He prefers Martinrea (MRE-T) which is a little riskier but you get a little bit more torque as far as valuation potential. However, Magna is a fine name to hold in your portfolio.

Magna (MG-T) or Linamar (LNR-T)? Both of these are good but for different reasons. North American global auto production is still recovering from 2008. Other regions, like China, continue to grow. As long as the auto cycle continues to grow, and he thinks they’ll be good for the next couple of years, you’ll continue to see the auto parts suppliers do well. Between these 2, this one is larger and has a very good balance sheet and is using it to do more investments, buying back stocks and paying dividends. Because of this, this would be safer.

On her Watch List as she feels the auto cycle is recovering to more normalized levels. This is a supplier to all the OEMs so you do not have to bet on one particular OEM. Stock didn’t really experience the pullback that a lot of the US auto suppliers did. She would like to buy it on a 5% percent correction.

Should you buy a long-term Hold right on the 200 day moving average if possible? If it breaks below the 200 day, should you Sell? All tools, like the 200 day moving average, are indicators. Often moving averages are broken temporarily. This doesn’t necessarily mean the end of a trend but is something that used definitely should pay attention to. If you have a series of higher highs and higher lows suddenly being reversed and the 200 day moving average is broken and maybe the fundamentals came out with lousy earnings or something, when all those ducks line up, then you Sell. This stock had a gigantic move recently and is probably still above its 200 day moving average.

(A Top Pick Jan 31/13. Up 68.98%.) Feels there is still a little bit more room to run. Fair value is probably around $100-$105. Benefits from a weaker Cdn$. He likes exposure to the automotive sector, especially their leverage to Europe, which accounts for over 50% of their revenues, but still only about 10% of their operating profit.

Prefers the auto companies. He is positive on the whole sector.

(A Top Pick Jan 21/13. Up 77.54%.) This is obviously levered to Europe, which is good. Also, somewhat to the emerging markets. Remains a really good margin expansion story and a top line revenue growth story. Still trading slightly below its peer group. Great balance sheet that can fund future acquisitions. Good global footprint.

Has some pretty good support around the $80 mark. Consumer discretionary is going to do very well, so all these companies should go higher.

A good example of a market leader that is starting to roll over. It broke its key trend line. Make sure it does not break the $80 level.

If interest rates go up a little bit, what will the impact be on the demand for autos? A lot of stocks that support that sector could be soft. Wait for the second half of the year before buying.

It is a big holding at his company. He really likes the auto industry going forward. Magna has lots of opportunity to improve margins, specifically in Europe. He believes there are legs in the auto cycle. Thinks there is only about 4.5% more for it to drop so buy it here.