Magna International (MGA-N)

Owns shares in Canadian dividend fund.
Share price appreciating after Covid-19.
Recession fears weighing on share price.
Believes is a good long term investment.
Excellent value at current share price.

Recent bad news tough on stock.
Has owned shares in the past, but not currently.
Very bearish on the auto sector.
Electric vehicle very disruptive on sector (top down government policy).
Wait until sector become better run. 

MG has a decent enough balance sheet, with net debt about 1.6X annual cash flow. 
Dividend payout is in the 25% range and we would not expect a cut. 
Three years is a long forecast time, but analysts show close to $10 in EPS in 2026, so if that is realized the stock is very cheap and is likely to do better. 
But it has had a series of bad announcements, and we would expect the company to be in the penalty box for at least several months now. 
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Current share price presenting good buying opportunity.
Very large shareholders through the years.
Well run company.
Growth into electronics business will be good for the long term.
Auto sector recovering well. 
Car demand growing. 

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. LG joint venture very favorable. Margins improving and strong liquidity. Positioned well for EV growth. Globally diversified operation. Unlock Premium - Try 5i Free