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

Likes the auto sector. We are seeing the return of industry back to North America from overseas. Thinks it is a long term story. Technically, we are seeing a massive head and shoulders pattern. Stay with it. It has a long way to go, along with its peers.

Auto-parts company. If you own, she would continue holding. It is on her watch list and she is hoping for a 5%- 8% pull back.

Near an all-time high and he wouldn’t get in at this point. Europe is still a question mark for them. Their operations in Europe are not doing as well, but if those operations kick in, the stock will probably go up another 50% or so.

Has been a great performer. In auto stocks, there are many to choose from. A Top Pick of his was going to be Johnson Control (JCI-N), a building systems manager, but also have an automotive division, where they make seats and batteries. When it comes to auto stocks, Johnson Control would be his choice although he thinks all the auto stocks are going to do very well.

Has outperformed analysts’ expectations for 3 quarters. The key issue is profit margins. EBITDA margins have increased by 20% which is huge. For a company that is going to report $35 billion in sales this year, that leverage is spectacular in terms of earnings potential. That was when Europe was not doing very well. Now Europe looks to be picking up steam in the auto sector, so if Europe kicks in, you got great things going on. Also, they are sitting on $1 billion of excess cash and they are looking in China and Russia for acquisitions. Stock is trading at 13X earnings. Thinks the stock is going to $100.

Trading at very, very high levels right now. Have an excellent balance sheet and they are a leader in the field. Auto sector has had a huge recovery so this might not bode as well in the future.

Phenomenal move. Technically it still looks good. Stay in until his three technical indicators are not all positive. Will do well from end of October until around April.

Auto parts area has generally been a very good place to be. There are 2 things driving the US economy, housing and autos. This company is probably the healthiest company in the auto parts business in North America. Too expensive for him.

Hitting new highs every day. $96.51, 23.5% upside to model price. Everything is working for it. Buy it on any pullback. It is the auto refreshment cycle.

(A Top Pick July 12/12. Up 101.81%.) Had seen that the auto/truck fleet was at its oldest average age ever. He knew there was going to be a huge upsurge in auto assembly. Thinks the American car industry has at least another 2 years to run before the fleet is back to normal.

(Market Call Minute.) A little expensive to buy right now but she is watching to get into it.

Stock has been on a tear. Chart shows it has been on a parabolic move, i.e., it arcs off of the trend line. Typically parabolic moves like this don’t last too long. It is probably likely to have a short-term pullback or at least a sideways consolidation but ultimately, the trend is up. Take a look at RSI and if it is a little overbought, let it roll over, pull back a little bit and when it starts to hook up again to the upside, that would be an entry point.

Doesn’t think this is an entry point. Be cautious. It is a cyclical stock but could correct 20% and still be in a strong up trend. If you believe the global economy turned and interest rates are going up, then they are buying less cars. If it pulls back to the bottom of the trend then he would consider it an entry point.

(Market Call Minute.) If this got back to $65 you could buy some.

(Market Call Minute.) Leveraged to improving auto production in North America and hopefully in Europe as things slowly improve.