Martinrea (MRE.TO)

Some downside protection and earnings growth is at a very low valuation. Stock was off recently in the last quarter, when they met the earnings, but projections going forward were probably below what the street wanted. Spending a lot of money on programs going forward. As these programs come in, it is going to generate new earnings growth for the next couple of years. Sees them generating better than 10% earnings growth going forward for the next 3 years. Trading at under a 10X forward multiple. Also, they have a great positioning in aluminum parts. Yield of 1.18%.

This auto parts manufacturer had a lawsuit hanging over it and the stock really fell, and then recovered and pretty well doubled. Chart shows it has a nice trend line and is a little bit below it. Stochastics indicator is at the high end of its range, so it might be exhausted right now on a short-term basis. He would be careful of the $10.66 level and make sure it holds. A little bit undervalued and a little bit over bought.

He is not in the auto sector at this time. However, this one screens very well and he has been watching it.

(A Top Pick Nov 29/13. Up 34.41%.) Getting a new CEO who is clearly an industry guy. During the fight among the board, this created an opportunity. The stock became pummelled unnecessarily and it became a great Buy. Thinks he is getting closer to exiting the stock rather than buying at this time.

Likes it. They will earn a dollar this year, but then accelerate because they are taking in their German subsidiary. Then there will be some dilution in shares.

It was quite a ride over 2014. After a ride like that it is due for a healthy correction. You do want to see it find support at some level. Wait and see if it finds that around $12.

At present, in price to book terms, it is more expensive than Magna (MG-T) and Linamar (LNR-T). However, it has terrific upside potential. Lots of upside potential. He doesn’t think it matters a good deal which of the 3 you select.

(Top Pick Nov 28/13, Up 61.28%) There was a lot of controversy around it and that was the time to buy it. It was still growing and generating positive cash flow. It is getting closer to an exit at this point. He likes looking at stocks that get beaten up.

When looking at the production mixes over the last several quarters, he has been more in favour of Magna (MG-T) and Linamar (LNR-T) as opposed to this company’s exposure. He would rather be in one of those instead.

(Top Pick July 11/13, Up 14.98%) He bought Magna instead of this. Likes both names.

Do a lot of business with Ford (F-N). Have a number of manufacturing facilities in the US. Made an acquisition a few years ago in Europe that, on the surface was risky, but we are starting to see a turnaround in the European auto markets. Had some issues earlier this year when the former CEO came back, accusing management of wrongdoing. It seems those issues are largely behind them. Thinks they look pretty good. If you can stomach the increased volatility and some of the uncertainty, it is probably a good bet.

Nice uptrend this year. People may be behaving in such a way as to suggest a correction is possible. $11 could be a pullback target.

(Market Call Minute) Would not buy here. All the accounting issues seem to be behind them, but it is not completely cleared up yet.

Stock moved down and then up based on what is happening internally. Well run company in a good business sector. Internal issues keep the stock price down at present.

(A Top Pick in June 5/13. Up 27.12%.) Saw this as far too valuable to sit at the low price it was.