Slowwwwww, but....Great company, but market is hung up on the fictatious "Peak Auto" concept and Linamar is being lumped in. They're going to have good growth for the next 3-3.5 years, which will be perfect timing for them to further reduce their debt from the acquisition. Then the dividend will likely increase or they will push the envelope again on an acqusition for more growth - maybe both. Either way cash is ahead! Institutions are not understanding that Linamar is growing it's maket share vs. competitors. For example industry auto sales may grow by 2%, but Linamar is growing it's market share within the 2% at a much higher pace. Even if we slow they will still grow.... They manage the company well and have hihgh ownership.
My view:
- Market is hung up on fictatious peak auto theory
- Concerned about a global recession so there has been a flight to safety including gold, the greenback and some defensive stocks. I'm not a believer, but I do believe we will be grinding ahead very slowly with some tremors that will need to be managed
- Summer sucks for cyclical industries
- U.S. election concerns are yet to challenge the stock
- needed an adjustment from 20-40% growth the market was used to teen digit growth
Catalysts:
- we'll be out of the summer soon and into a normal volume trading season
- this quarter will be great as will the remainder of the year; should wake some investors up
- they're still improving operational efficiencies and increasing revenue from their acqusition
- interest rates will remain low for car buyers
- stocks p/e has been reset and now it's time for normal stock appreciation with some speed bumps along the way
my view and more at
https://www.retirementrush.com/