Martinrea (MRE.TO)

Thinks it will get the uptick. Uptick in North American volume in auto sales starting last November. US auto stock is 11 years old. Strong growth out of Asia. Not a bad time to buy. You are probably going to see an upswing on this one. At most you might be able to pick up 5-10% cheaper.

Aggressive stock. If there are any glitches in the economy, then auto sales can turn around. This is one of the better managed companies. Hold and maybe add a little. He stays away from the auto sector, though.

It is going to trade with the auto parts sector. Had a good run. Not the cheapest stock and is probably trading at fair value. He might buy if it pulled back to $8.

(Top Pick Aug 17/12, Up 46.06%) He sold a little because it moved up so much and was over weighted. It was trading at 6 times earnings and the expectation was a total collapse and he thought better.

More than 22% earnings growth over the last few years. Thinks they have a record quarter coming. 10 times earnings when compound growth rate is over 20%. Doesn’t think they will boost dividend this quarter but in the future.

Auto Sector. They got a big Ford Escape contract and have been ramping up. Pressure by Ford to speed this up hurt their margins and chased some investors to the sidelines but he has stuck with them. If you look out a year or two they will have a great plant and a great client in Ford. The stock is still undervalued compared to their peers.

(Top Pick Jun 22/12, Down 9.48%)

This has been a great place to be. In the last 12 months or so, this has been moving nicely. Has moved quite sharply and has done this before. Chart shows this has typically had resistance at around $10.50. If you own, consider having a tight Stop Loss on it.

You are only paying about 9X for the stock right now. There is tremendous upside. Feels they can do $0.50 a quarter ($2 a year ). Multiplying this by 12 gives you a double from here.

(A Top Pick Aug 17/12. Up 26.61%.) Benefiting from expansion of new platforms on vehicles. Still trading at only about 8X earnings, so still not expensive.

Auto-parts manufacturer. Cdn$ has been quietly being devalued versus the US$ over the past 2 years and this company is a direct beneficiary of that along with a growing economy. Yield of 1.29%.

Third-largest auto parts manufacturer. This is a play on what you think North American production is going to be. Has been expanding its production. As outsourcing by the auto companies continues, it should be okay. (See Top Picks.)

Well run auto-parts company. Stock is very, very cheap. They are setting up for future growth and he thinks they are going to have a great year in 2014-2015 because it’s the model years that are starting to hit production lines.

There is a lot of pent-up demand in the auto industry because of a fairly old fleet out on the road. He has focused on Magna (MG-T) and Linamar (LNR-T), both of which are performing a little bit better than this stock. This one has a good revenue growth rate but earnings have been a little spottier over the last couple of quarters.

Very cheap at 7X earnings. Will do about 31% EPS growth this year and about 23% next year. Have had too much business come at them too quickly and this hurt margins. Have now caught up and that margin expansion should begin again. Good EPS growth.