Lear Corp. (LEA-N)

Tier 1 supplier to automobile business.
Excellent prospects for business going forward.
As economy recovers, demand for Lear products will grow.
Expecting margins to rise with EV business.
Owns shares in company.

Auto-part manufacturer. 
High quality business with excellent margins.
Electronic cars will create massive demand for auto parts.
Expecting rapid EPS growth going forward. 

Automotive company. They are in 37 countries. They make electrical power systems. Well managed. Trades at 8 times earnings with solid double-digit growth in front of them. They had been beaten down with all the NAFTA nonsense and the fears that could happen that he feels is behind us now. Dividend of 1.9%. (Analysts’ price target is $193.08)

(A Top Pick September 19, 2017. Up 7%). It went up quite a bit and has been coming back down because of trade issues. He expects it to rise again once the trade-related clouds blow over. The company’s growth rate is impressive and it trades at only 9x earnings.

A big producer of auto seats and a solid, solid company. Has done really well over the last couple of years, executing extremely well. Prefers Magna (MG-T), which is a lot cheaper and probably a heck of a lot better. As a Canadian company, it is probably easier for a Canadian investor, plus the dividends are eligible for Canadian dividend credits.

Automotive seating systems. Trading at less than 9X earnings. Growing rapidly and well-managed. The auto industry is more than just North America. About 17 ½ million units out of N.A., 22 million out of Europe and about 26 million out of China. Dividend yield of 1.2%. (Analysts’ price target is $167.)

(A Top Pick Feb 17/16. Up 40%.) The maker of car seats for tier 1 automakers. They are in 35 countries and are not just captive to the 17.5 million units that are coming out of the US. They also have a feeder system into the 22 million European units, and about 26 million in China and Asia. A very, very strong network globally. Trading at a very modest multiple of less than 10X earnings.

A secondary automotive play in 35 countries. They manufacture automotive seat fixtures. Very effectively managed. Trading at a very nice multiple of about 10X earnings, yet there growth is in the mid-teens. Dividend yield of 1.13%. The entire auto industry is about 55 million units, with about a 3^rd of that being in North America. The European market is just getting off its back in terms of automotive recovery. Also, the opportunity in the emerging markets is great with the move towards the middle class.

(Top Pick Dec 17/14, Up 32.84%) No longer in air parts but in auto parts. Split thirds between US, Europe and emerging markets. It is an attractive company.

Auto parts manufacturer. FM value is quite a bit higher than the current price. The P/E ratio is 10.5 times, which is not bad. The bad news, on a Price to Book basis, is that it is now trading at a high since the market bottom of 2008-2009 at about 2.5X BV. For an auto parts Company, that is getting up there. He typically sees them peaking at about 3.5X BV, so there is more room. He can see some upside, but don’t fall in love with it.