Q: The auto industry backdrop and Linamar. I can understand that the EV scene is mixed, perhaps at best; there are re-charging issues as well as some fire risk associated with Lithium, and that Chinese subsidized imports are a potential problem, but my reading was that our industries here, MG, LNR, and MRE, were largely agnostic to the potential EV problems. In addition my most recent related reading was that Linamar has diversified at least in part into agricultural machinery, which would be an addition to their initial skyjack venture, and that while the US Fed had postponed rate reductions the US economy continues to bubble along, albeit at a slightly lower rate than hoped, but is OK. So what have I missed? Is Lithium a bust? How serious are the range/ recharging/ fire issues? A PE of 5 or 6 is for the birds.
5i Research Answer:
It is true that how and the magnitude that the EV trend is going to affect the traditional...