Q: Hello Team,
I read your comments regarding Magna and your decision to downgrade it to a sell for the obvious trade war reason but also other ones. Do you place LNR in the same basket?
During these difficult times for Canada and our leading companies I appreciate your insight more than ever.
Thank you,
Adel.
I read your comments regarding Magna and your decision to downgrade it to a sell for the obvious trade war reason but also other ones. Do you place LNR in the same basket?
During these difficult times for Canada and our leading companies I appreciate your insight more than ever.
Thank you,
Adel.
5i Research Answer:
LNR is in the same boat (same car?) as Magna. It is also very cheap though. It has some European business ($2.8B) which insulates it a bit from the US trade war. The balance sheet is fine and it will get through this crisis, but we would not expect much from it this year.