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TSE:LNR

Linamar Corp (LNR.TO)

102.46
+2.12 (2.11%)
as of Jun 19, 2026, 8:00:01 pm Market Open.
197 watching
0
DON'T BUY
Defensive stock? He does not own this as he sees the auto space being challenged -- especially the parts manufacturers. The only thing positive is their valuation. A better defensive holding would be something that pays income. (Analysts’ price target is $51.00)
COMMENT
LNR vs MG vs MRE? The auto parts sector has had headwinds. He would stick with MG-T as they pay the highest dividend. He would have thought LNR-T would have been more defensive, but an acquistion in the agricultural space has proved to be a failed attempt to diversify. All three look very cheap. He does own MG-T.
DON'T BUY
He has been cautious around the auto sector. Demand was flat to down last year. There is demand headwind and the transition to electric vehicles. It's going to be a challenging period. It is a well run business but there are too many headwinds.
TOP PICK
They have been diversifying their business away from solely auto parts. They have been challenged by a stressed business for auto parts, particularly in Germany. A lot of these issues have been factored in. Trades at 6 times earnings and 8 times cash flow. One knock against them was the level of debt incurred to buy into an agricultural based investment. In-siders have been strong buyers. Yield 1.0% (Analysts’ price target is $52.00)
TOP PICK

One of his favourite Canadian companies. They have products for electric vehicles. They make all the transmissions for Ford and GM for pickup trucks, which will not move to electric any time soon. (Analysts’ price target is $51.67)

PAST TOP PICK
(A Top Pick Mar 11/19, Down 4%) Auto sales for new cars are slightly down and this hurt the sentiment for the whole segment. He probably recommended it a little too early. Despite the difficult environment, sales were up and they took market share. 6.5 times earnings. It is quite inexpensive to own. There is talk that America 'peaked-out' in autos in 2016. The two car family is becoming less popular.
COMMENT
Auto stocks are seasonal from March-mid-July. There's nothing overly negative with LNR until then. Technically, this has been in a long-term downtrend, this and the whole auto space given sagging car sales. There's a bump at Christmas time for auto-related, though. Momentum is waning to the downside, which is positive. Maybe we're finding a bottom. LNR has to break above $45 which may mark a rebound rally. Cheap valuation.
PAST TOP PICK
(A Top Pick Nov 18/18, Down 6%) This is a stock that can double. Electric vehicle technology. Continues to gain market shares and is extremely well managed. They are building a company for the long term. A year or so is disappointing but he would just buy more. Thinks it will go to a new peak sometime in the next 5 years.
COMMENT
It’s a classic cyclical stock. It’s very cheap right now. It’s an auto company so if there is a slowdown or recession, then it could be hit.
DON'T BUY
Trades at a low multiple like all auto parts companies. But cars have plateaued. In this space, she prefers Magna. But overall, the end market is slowing. She'd keep an eye on car demand in Europe and China, but it's flat in North America.
DON'T BUY
He owned it earlier this year. He thought it would benefit when the North American Free Trade Agreement would be approved. That didn't quite materialize in the time line he expected. He thinks there may be better plays in the auto parts area.
WATCH

A downtrend has been in place since 2017 for LNR-T. It has shown a little relative strength against the S&P recently. Also, another bullish indicator is forming so it should be watched. He is trying to acquire MG-T, if it can break above $50.

PAST TOP PICK
(A Top Pick Sep 25/18, Down 35%) He sold at $48 and took some loss. He thought the new free trade agreement would benefit the auto industry and it has not been ratified yet. Their agricultural business has been hit by China not buying our grains.
WAIT
He would wait. The auto industry is dealing with tariff issues. Their Skyjack division has been hurt with weaker earnings. If we go into recession this stock will go much lower.
BUY

Some of the outlook for the auto sector which is negative is reflected in their price. MG-T gives you a more diversified part of the car. LNR-T is mostly drive train components and these are still needed for electric cars. The parts don't change as much as more cosmetic parts so when you tool up for a part the investment lasts far longer.

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