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

Auto cycle continues to be in a recovery phase. This one is extremely well-positioned to take advantage of that. US consumer has a little bit more disposable income now. With more stability in the European economies, car companies, and the parts makers will continue to do well. Another 10%-15% drop and he will be seriously looking at this.

(Market Call Minute.) Feels that the replacement cycle in cars is continuing. Making some internal changes which should improve profits.

Trading at 10X next years earnings. Trades at a 7% free cash flow yield. Great management team. 4^th largest auto-parts company globally. Have all the elements that allow the company to grow and take market share. Great balance sheet. Yield of 1.58%.

(A Top Pick Dec 3/12. Up 94.46%.) Generating lots of free cash flow. Balance sheet is in amazing shape. No debt and they have access cash. Valuation has gotten a little ahead of his comfort zone so he is not buying this for new clients. Upside could be $100 a share next year.

(Top Pick May 15/12, Up 33.89%) Owns for the North American business, not Europe just yet. The big 3 in the US are doing quite well. Earnings have grown 15% year over year and the multiple has done well. Closer to a fair price. An unlevered balance sheet. You will get extra drivers from Europe in the future when it turns up.

Not an expensive stock. He likes the auto-parts makers. Feels the stock is just taking a pause right now. He sees auto sales continuing to improve in the US and GDP growth continuing. Good exposure to have in your portfolio.

Thinks this is waiting for the European side to come around to give us another leg up. We need Europe to get going a bit better than it is. They have managed this company extremely well. We are at the very beginning of this cycle. Auto sales have just gotten back to the levels where they were in 2006-2007.

This has had a huge run. His target has been $92. There is considerable more scope from their European operations. US automobile production is continuing to surprise on the upside.

Has had an incredible run. Out of all the auto-parts companies, it has probably had the best run. Doesn’t see problems ahead. Car sales have gone from 8 million units in North America to almost 19 million by year-end. Sees upside coming out of Europe. German automakers, which are more than 50% of the total European sales, have been on fire. Prefers Linamar (LNR-T) over either this or Martinrea (MRE-T).

Linamar (LNR-T) or Magna (MG-T)? All of the auto-parts companies have done really, really well. Multiples still, look cheap because there is a lot of growth but you have to be careful of that because it might be peak earnings here. Both have beautiful charts. Thinks Linamar trades at a little bit lower multiple. There is more liquidity with this one and they have quite a bit of European exposure.

Fundamentals look good for the auto industry, but when you look at the chart, you are up an awful lot. He would like to take some profits. Nothing on the horizon that says to run.

(Market Call Minute) Following it. Could be in the portfolio shortly. Buy as soon as he does his due diligence.

$108.05, 22% upside. Street consensus is about 3.5% upside.

Just entering into its period of seasonal strength, usually from around the end of October right through until March of each year. Chart shows a very distinct upward trend and we have just gone into an all-time high. This is very, very bullish. This one has a technical score of 3.

Big beneficiary of the rebound in auto stocks. Made lots of good acquisitions in the downturn. Extremely well financed and has a good balance sheet. Europe is getting marginally better and adds an additional tail wind to the shares. It is not expensive relative to the peer group.