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

If he were going to buy an auto parts company, this would probably be it but he has some reservation because of their European exposure. He is a value investor and he just doesn’t think this is value right here. Perhaps a 10% correction would be better.

Big cap stock. Priced inexpensive relative to piers. US guys have forgotten about this company. Impressive return on capital and dividend raises.

Trading at about 10X earnings so it is pretty much near its historical PE valuation levels. Has a beautiful balance sheet. Has $4-$5 a share in cash. Expects it to earn $5.50-$6 this year. Fair value would be $60-$65 so there is still more upside. Great dividend grower.

(A Top Pick March 29/12. Up 17.79%.) Knows that the auto sector is going to be buoyant in the US for another year or two, simply because the replacement cycle of vehicles fell behind. Because this company sells to so many auto manufacturers this will be good for them. Not expensive.

Near its highs and she would wait for a 5% pullback. US autos is in a recovery mode, but Europe is still a mess.

Things have been going better for them in the auto sector, particularly in the North American production side. Right now it is trading at a fair valuation. If it pulled back 10%-15% or so, he would consider looking at it. (Mid-to high $40’s.) If you own, Hold. Good chance that they could be increasing their dividend.

Has been lightning up on this but still has a big position. Had a great move and the auto sector has done exceptionally well. The risk is in the European business. This one is beautifully positioned. Still historically very cheap.

Auto parts manufacturer. A lot of exposure to US and Europe. Europe accounts for about 45% of revenue and is not profitable, but he expects a turnaround in Europe particularly as auto sales start to pick up, or the expectation of them. If you can get vehicle volumes that are moving higher with a margin improvement story in Europe, alongside a very strong market in the US, this stock could hit $70-$75 in the next couple of years. Dividend yield of 2.08% with plenty of room for an increase. Very cheap at 9X earnings

Thinks the car industry is past the worst point and is in recovery mode. Most is priced in at this point. There is risk of a correction in the market in the next few months. If the markets pull back then this is when you buy with new money. It might go a few percent higher in the next few months.

Globally the auto sector is going to get better. North America is certainly improving. Emerging markets are pretty good. This stock is cheap by its historical value. Trading at about 9.1X PE versus 10.9. Very strong balance sheet with about $1.4 billion in cash that can be used to fuel organic growth, make acquisitions, increased dividends or make buybacks. If the ECB is right, Europe should be coming out of recession towards the end of next year. 2.08% yield.

Automobile manufacturing is doing really well, which is why the stock has had the run it has had. Extremely well managed. They are negatively impacted by Europe, which is the only cloud on the stock. North America and Asia are booming away.

Feels that one of the ways to play the automobile sector is to pick the car parts maker that sells to everybody.

Car parts sector should do reasonably well but he would look for a smaller player, which will give you better returns. When you have tailwinds, the place to be is not in the big names but in the smaller ones that can grow much more quickly.

Has seen a change in capital structure and in management. Trading at 9X earnings with no debt. Has a global footprint. Capability of high-quality manufacturing/assembly vehicles as well as providing the parts. This is in an industry that is experiencing growth.

There were some terrific auto sales numbers in the US, who are buying cars while worrying about the fiscal cliff because the fleet is getting hold.