Tenneco Inc. (TEN-N)

They make car exhaust and ride control systems. Recently bought Federal-Mogul that will merge at first, then split into two companies. It's a really cheap company at 6x forward earnings. Investors are abandoning sectors like this, so this is a serious opportunity. (Analysts' price target: $57.67)

A derivative of the auto play. It manufactures exhausts and ride control systems. Some of the auto companies have had issues, but we are still seeing record levels of units. The run rate is still about 18 million units in North America, and about 60 million globally. What he likes is that it has a catalyst. Emission standards have been tightened, and will continue to do so.

(A Top Pick June 16/15. Down 11.9%.) A provider of car parts. A major manufacturer of exhaust systems and suspensions. The catalyst to this is the regulatory one, as globally countries are stiffening the requirements for exhaust emissions. Still a Buy.

(A Top Pick Nov 3/14. Up 4.91%.) In the auto supply business. They do exhaust systems. With global legislation on remission control, this company will do well.

Involved in exhaust systems for vehicles, both commercial vehicles and automobiles. A lot of their growth is coming from off-road farm machinery types of vehicles. Exhaust emission standards are ever increasing globally. Not expensive and trading at a very reasonable multiple.

Exposed primarily to exhaust systems. One of the benefits is that there is legislation and pending legislation on emissions and the controls that are needed, and this is the major producer in this area. He thinks auto growth will probably get to 18 million units on an annual basis in the US fairly soon. Europe and emerging markets are at different stages, but they also represent good value. This is very well positioned and should do well in the long term.

They are in the exhaust and ride control, manufacturing business. Most of their business comes from the OEMs. There are about 16.5 million new vehicles produced every year in North America. He thinks this can grow to 18-18.5 million before the cycle is done. There is a strong catalyst in that the exhaust systems’ requirements become tighter and tighter in terms of emission controls. Trading at about 10X earnings. Great free cash flow yield.

(A Top Pick Aug 20/13. Up 37.33%.) 15X earnings for a company doing what they are doing, is not excessive. Thinks there is more opportunity and organic growth and multiple revision.

He likes his motors. They make exhaust systems and ride control systems. There are government lead initiatives to reduce carbon emissions. That means this company will supply new product. 10.5 times next year’s earnings.

(A Top Pick Aug 31/11. Down 8.83%.) Automotive parts. The whole auto group is down but this still has plenty of potential. Well-positioned because of governmental regulations on emissions.

(A Top Pick Aug 31/11. Down 6.24%.) Aftermarket auto parts company and this has been a choppy area but the catalyst is, emission controls are becoming more and more strict so you are going to have to upgrade systems to continue being approved. Expects organic growth will be in the 14%-15% range.