Investment Q&A

Q: Hi, why are the auto parts companies trading at what seem to be very cheap valuation? and which one would you prefer?
Thanks.

Q: Given the pull back on these two do you consider this a decent entry point/ Which would be your preference? Would selling puts on either be a good strategy?

Q: Morning,

Auto parts companies in a bit of a tailspin. Any reason to close a long term position in Linamar? What do you expect from this stock over the next quarter, year?

Thanks!

Q: Hi,team thanks for all your great insight. I would like your views on Linamar and would you expect this company to benefit more than Magna from the low dollar.

Q: Hello 5i team,
There is a lot of talk about deep discounts inflating auto sales in North America, thus suggesting a peak in activity.
What is your take on this ? I hold a little LNR and a little MG (3% of portfolio) and was thinking of adding a little XTC (another 1%)
Thanks,
Antoine

Q: Brendan Caldwell manages a Value-Momentum Fund. He says
that cars are not moving off the lots as before, and is
negative towards MG and LNR.

Have you seen stats to prove this?
I bought LNR recently and it has dropped sharply.

Q: What is happening to LNR? Dropping like a knife today, even though they just reported an excellent quarter. Thank you!

Q: Hi Peter,

Can I get your opinion on the $1.16-billion offer to acquire French aluminum components maker Montupet SA in a deal that expands Linamar’s global reach and customer base. The market doesn't seem to like it because the stock is down today.

Correct me if I'm wrong but LNR earnings are growing +30% yoy yet the valuation is only 10x 2015 estimates. I know the market is full of fear but this stock screams bargain to a GARP investor like Peter Lynch.

Q: Hi guys,
I'd like to get your take on the effect of the TPP agreement on Linamar's future. I'm still a bit under water with it and wonder if I should get out now, before it starts to slide in response to the ratification? Thanks for all you do!

Q: Peter I just took (Aug 21 ) some substantial profits on Byd.un / Linamar ($70,000). Now I have capitol gains to pay. Any strategy you can suggest to lessen the impact. I would like to buy both of them back at some point is there any quick calculator that figures this out at what point it makes sense to reinvest? - I am concerned about eating up profits and paying tax ..Thanks for your advise it is much appreciated

Q: Just wanted to follow up on Linamar given the continued sell off. Its now trading around $66 and seems like a good entry point to pick up a half position with another half below $60 if the sell off continues. I realize its a cyclical industry, but it had sold off much more than Magna. Do you prefer one over the other or both good and depends on valuation?

Thanks,
Jason

Q: Although linamar's results were "outstanding" and in line with consensus it is tanking... What am I missing inthe report? Is it worth holding at $78. Please give an analysis re what reasonable expectations are for this stock
Thanks

Q: Do you think that the auto component suppliers are reaching the end of their run or could there be more upside? Thanks.

Q: Good Morning,

LNR has drop at least 10% in the last week or so. Is there something I do not know about?
Thanks

Paul

Q: Hi Peter and staff,
Should I sell Linamar and buy Magna at this time?
Thanks Shirley

Q: What is your opinion on the earnings from LNR? Is there any fundamental reason for the dip? Thanks.

Q: DO you think that the auto parts suppliers,in spite of Europe,are a good buy at this time?

Q: Why is it selling off. Should I sit tight if I own it. Thank you.

Q: re: LNR

Saw your comment a few days ago. I am seriously considering a position in Linamar because I believe the auto industry has a bright future in the next couple of years and I feel Magna is a little pricey at it's current levels which leaves Linamar as an alternative for getting involved.

I think I know the answer to your opinion re: my comment on a the bright future. Do you think my comment on Magna is accurate? And with keeping in mind the Sept market blues (as usual) we are seeing right now, would your advice be to buy Linamar now, wait and see or not buy?

Stock is up today 1.52%

Thanks for all you do

Gord

Q: Hi 5 I Team -- Might there be any further insight into Linamar's (LNR) performance, of late? After its 52-week high in June, it's been on a very slow, but steady decline, despite a very good last Quarter. There is much rumbling among analysts that the automotive industry is "nearing its peak" and that investors in the auto sector should be thinking of taking their profits. I am up 24.9% at this point, and would prefer not to see my profits erode anymore, especially as I don't have an exceptionally long time frame for this portfolio -- less than 2 years. Do you feel the auto sector has had its day, or is it just September Doldrums? I notice that Magna, AutoCanada also have been grinding to a slow halt. Is this just a resting period for the sector, or is there something flying under the radar that most ordinary investors are missing?