Martinrea (MRE.TO)

(A Top Pick Oct 6/17, Down 2%) He sold it back in July. There were great concerns regarding NAFTA.

Stick with it. They benefit from the NAFTA deal this week. Cheap. The best player in aluminum use in lightweight cars. Margins rising. Trading at 7x forward earnings. They're doing a good job. Their price is the best of the group.

All three of the auto parts makers--Martinrea, Linamar (LNR-T) and Magna (MG-T) are at significant risk if the US imposes its auto tariff. Setting aside the risk, MRE ranks better in his database than the other two. He sold MRE and LNR in order to lock in his profits as the price declined. He may soon sell Magna. He will not consider buying them until their prices start to improve.

Of the three Canadian auto parts makers, MRE is #3. After some struggle, MRE has been running well the past five years. It lacks the leading edge technology of its peers. All three are being effected by politics (Trump's tariff threats). He owns Linamar instead. MRE is cheap now, but these companies are fighting current headlines. That said, he likes the stock. It has good fundamentals.

(A Top Pick March 30, 2017. Up 32%). Trade talks have hurt the auto parts companies. However, Martinrea has as much production in the US and Mexico as Canada. This is one of the cheapest stocks in Canada. The trade dispute fears are baked into the price.

Has a low multiple, 6.7x, compared to the market. E-cars and NAFTA are two worries, but MRE has 41% of its production facilities are in the U.S. and sells 35-40% of its production to America. MRE has little NAFTA exposure. (Analysts' price target: $20.50)

It was lagging for a while, then picked up over $16. It's done really well. He sold his shares too early. But with NAFTA worries, he'd trim holdings now.

He loves this stock. It moved up a while ago and keeps firing on all cylinders. He read a research report recently that indicated an upside of $27--assuming the demand for cars stays strong.

Exceptional world class business. He finds auto parts challenging. However they are well run and are a good performing stock.

(A Top Pick Feb 13’17, Up 71.07%) It has always been a big winner. After the US election it was down. This one worked okay. He still believes in it.