Q: Do you think this is a hold considering all the problems with the the auto industry?
5i Research Answer:
MG is, and always will be, cyclical, but this is reflected in its valuation. Recent Canadian news from other companies is not encouraging, but MG has more than half of its business outside N. America. With the stock well off its lows and interest rates heading lower, we would see it as a HOLD today. Free cash flow remains solid, and at least 10% EPS growth is expected next year.