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

Play on burgeoning auto sector in the US. Exposure to Ford, GM, etc. Getting exposure to Asia. Cheap valuation, dividends and you will see pretty good growth.

(Top Pick Dec 2/11, Up 26.14%)

Biggest auto parts manufacturer in Canada and one of the major ones globally. Likes their product offering and the fact that they are diversifying their customer base from just the Big 3. Balance sheet is under levered so they have a lot of room to increase dividends or make acquisitions to grow faster. Their short-term issue right now is Europe where they have quite a bit of exposure. The big customer there is BMW. Feels the stock will do well over the next 12 months.

(A Top Pick Oct 26/11. Up 21.72%.)

Believes global auto sales are below their peak levels and there is a lot of catch-up in sales, even in the US and this company has good exposure to that. Also, has exposure to the European situation, especially on the manufacturing side where they’ve got some of their most high cost manufacturing plants. If they can resolve the issues with margins in Europe and we see a more normalized macro environment, this company will certainly go to higher levels. Could see $55 in 12 months.

(Market Call Minute.) Expect there will be more outsourcing and this company is well-positioned. The wildcard is, what sort of acquisitions might they make to expand their operations.

(A Top Pick Oct 26/11. Up 24.76%.) Still likes. Won’t have as much upside because of expected slower growth in Europe. Still thinks it is worth $50 from here. 2.4% dividend.

All of the auto parts companies have performed relatively well recently. This is the one that he favours. Has a fortress balance sheet. Well-run. Trades at a discount multiple to its peers. About $1 billion in cash on its balance sheets. Nice dividend.