Summer Sale
50% off Premium Yearly
Opinions William Chin
MartinreaMRE.TOHOLDDec 29, 2017
William ChinStock price when the opinion was issued
As of Jun 19, 2026. Market Open.
You might be interested:
True, there are headwinds in autos, but this trades at 3-4x operating cash flow and 8-9x forward PE. Also, they're huge in areas like aluminum parts. Are well-positioned in gas-engine cars and EVs; there's 80% crossover shared between both kinds of cars.
(Analysts’ price target is $19.34)
John Zechner;fill-opacity:1;'/%3e%3cpath%20d='M31%2018.6001V30H8V18.6001L14.1334%2022.4334L19.4999%2014L24.8669%2022.4334L31%2018.6001Z'%20fill='%23EE5432'%20style='fill:%23EE5432;fill:color(display-p3%200.9340%200.3310%200.1956);fill-opacity:1;'/%3e%3c/svg%3e){kind=small}
Premium contentOur PAST TOP PICK with MRE has triggered its stop at $12. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 11%, when combined with previous recommendations.
Premium contentFollowing reported earnings indicating revenues increasing 22% over the year, we reiterate MRE as a TOP PICK. Supply chain and semi-conductor supply issues are lessening for the automotive supplier. It trades at 6x earnings and under book value. We like that cash reserves are growing, while debt is retired. We recommend trailing up the stop (from $11) to $12, looking to achieve $19 -- upside potential over 30%. Yield 1.4%
(Analysts’ price target is $19.22)Is really cheap at 8s forward PE and 3x operating cash flow. They delivered this year. Their operating margins are rising. He took some shares off the table at $15, worried about consumer spending and growth. Union impact? Doesn't know about direct impact by unions, but watch for impact of unions on the bigger players, like Ford.
John ZechnerPremium contentWe again reiterate MRE as a TOP PICK. The auto industry supplier last reported record all-time sales and growing cash reserves as it retired debt. It trades at 7x earnings and under book value. Its dividend is backed by a payout ratio under 15% of cash flow. We continue to recommend a stop-loss at $11, looking to achieve $19 -- upside potential of 40%. Yield 1.4%
(Analysts’ price target is $19.38)Premium contentWe reiterate this diversified supplier of automotive motor blocks and transmissions as a TOP PICK. Recently reported earnings showed sales were up over 12% on the year -- setting an all-time record. The company reports shortages of semiconductors is being to ease, which should continue to aid earnings growth. It trades at 6x earnings and under book value. Cash reserves are growing, while debt is retired. We continue to recommend a stop at $11, looking to achieve $19 -- upside potential of 43%. Yield 1.5%
(Analysts’ price target is $19.38)Premium contentThis Canadian based auto and propulsion light parts manufacturer is firing on all cylinders — pardon the pun. Recently reported earnings showed an all time record sales level - up 22% on the year. Management reports restrictions in semi-conductor parts are starting to ease and most of their plants are operation at full capacity. We like that cash reserves are growing as they retire debt. We recommend setting a stop loss at $11.00, looking to achieve $18.50 — upside potential of 37%. Yield 1.49%
(Analysts’ price target is $18.44)He does think there's some benefit in parts/repair. These companies are better value and have more upside. Interest rates will be challenging for a bigger purchase like a car. People who buy cars also tend to have mortgages. That's why he favours parts companies over the auto makers.
Brendan Caldwell
John ZechnerJohn Zechner
Bruce Campbell (2)
Chart shows there has been a bit of a downtrend over the years, but starting in March of this year, it had a very, very healthy breakout. It is currently at the highest point it has reached in 5 years, which means it will probably go even higher. If he had to pick an exit point, it would probably $20 or $21, but it is really too early to say. If you own, keep riding the uptrend, and use a 10% Trailing Stop.