Q: Peter & Co.,
I'm curious to hear your opinion on today's G&M article entitled "Time to book profits in Magna, other auto parts makers: analyst"
http://www.theglobeandmail.com/globe-investor/inside-the-market/hjkh/article14213639/#dashboard/follows/
Basically, Martin Roberge of Canaccord Genuity argues that the rise in oil prices and interest rates has reduced the affordability of autos, and at 12X forward earnings these companies will have a hard time maintaining momentum. He also referances the technical breakdown in US homebuilders as cause for concern in the sector.
I own both Magna and Martinrea as part of a relatively balanced portfolio... should one listen to Martin and "book profits and cut positions"?
Thanks!
I'm curious to hear your opinion on today's G&M article entitled "Time to book profits in Magna, other auto parts makers: analyst"
http://www.theglobeandmail.com/globe-investor/inside-the-market/hjkh/article14213639/#dashboard/follows/
Basically, Martin Roberge of Canaccord Genuity argues that the rise in oil prices and interest rates has reduced the affordability of autos, and at 12X forward earnings these companies will have a hard time maintaining momentum. He also referances the technical breakdown in US homebuilders as cause for concern in the sector.
I own both Magna and Martinrea as part of a relatively balanced portfolio... should one listen to Martin and "book profits and cut positions"?
Thanks!