Linamar Corp LIMAF

Primary Symbol: T.LNR

Consumer Cyclical Auto Parts

Linamar Corporation is a Canada-based advanced manufacturing company. The Company is engaged in providing manufacturing solutions and developing engineered products. Its segments include Industrial and Mobility. The Industrial segment consists of MacDon, Salford, Bourgault, and Skyjack. MacDon manufactures combined draper headers and self-propelled windrowers for the agricultural harvesting industry. Skyjack manufactures scissor, boom, and telehandler lifts for the aerial work platform industry. The Mobility segment is focused on propulsion systems, structural and chassis systems, energy storage and power generation for both the global electrified and traditionally powered vehicle markets and is subdivided into three regional groups and one global product group: North America, Europe, Asia Pacific, and the newly formed Structures Group. The regional mobility groups are vertically integrated operations combining expertise in light metal casting, forging, machining, and assembly.

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Linamar Corp > Jason Mann - BNN - Top Pick

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Post by Possibleidiot01on Sep 01, 2022 7:05pm

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Post# 34936891

Jason Mann - BNN - Top Pick

Linamar (LNR TSX)

Linamar has been a holding for us a number of times over the years, but like many cyclical stocks there are times we want to avoid it and times we want to own it. We think despite the economic softening, Linamar is attractive here.
Linamar is an industrial component manufacturer, known for its auto parts business but has expanded over the years into industrial and agriculture manufacturing.
The pandemic and the Ukraine war have constrained supply in autos in particular and there is now a large imbalance between inventories of cars for available sale vs. the pent-up demand for cars. It will take years of strong production to rebuild inventories and fulfill demand. Perversely, a moderate slowdown in the overall economy that loosens supply chains may actually help companies like Linamar.
Stock is cheap at only 4.6x EV/EBIDTA, 11.8x PE. It has no net debt now, so the balance sheet is in great shape. Insiders have been purchasing 1.5 million shares at these levels.
Price momentum is turning higher as well as expectations of growth return.