Linamar Corp (LNR.TO)

(A Top Pick Dec 01/20, Up 2%) He would buy it again. He thinks it is worth $100 or more. It may be caught up in the global semiconductor shortage. They have had significant wind in electric and hybrids. The skyjack division is a big company and one of their biggest customers is United Rentals and it has been flying. The LNR-T stock is cheap on a statistical basis.

2019 was affected by a GM strike. In 2021 it is shaping up to be a full recovery as each of their three businesses are coming back. Insider buying activity further reinforces his positive view. (Analysts’ price target is $100.40)

(A Top Pick Aug 24/20, Up 72%) Really well positioned. Build all transmissions for GM and Ford. Into EV and growing rapidly.

The car parts suppliers trade at low PEs, but are vulnerable to the auto cycle. Good news is that car demand has picked up faster than expected. She owns none of these stocks, but Magna is best in this class, given its global platform and recent performance.

(A Top Pick Jan 02/20, Up 49%) Car sales are booming now. LNR has an incredible business with technology so sound that Ford and GM trust them to make the new 9- and 10-speed transmissions for their pick-up trucks. LNR is also exposed to the agriculture boom. He targets LNR over $100.

His favourite manufacturing stock. LNR makes transmissions for Ford and GE pick-up trucks, so they're at the forefront for the car industry. They also have products for e-cars, like an electric axle. Their SkyJack division is rebounding with the construction business, and their fire machinery business is positioned well in the coming recovery.

(A Top Pick May 21/19, Down 25%) Last year, trade tensions between US and China hurt their business, because 10% of their business is agricultural equipment and that trade war hurt agriculture. The GM strike also hurt. There was insider buying over the winter, which is a plus. The virus has made this a buying opportunity now. A solid hold for him. Peak auto has hit the world, yes, but those declines in sales have been gradual.

Magna He owns Linamar instead. Both are suffering from perception with EPS plunging--car sales have peaked and there are fears that ride sharing will dominate more. Will people keep buying new cars? If so, these companies will do well. But both are great companies that should grow market share by acquisition and diversifying their businesses.