Post by
longrun86 on Dec 28, 2022 5:25pm
Linamar Thoughts
Looks like quite a few shares being purchased through the NCIB at 35k share per day. Linda has also been in on the action purchasing over $10 million in the open market in December alone.
I am looking for Linamar to continue the share purchases into 2023 and take down the full 5% allowed through the NCIB plus whatever special purchases they can make. The price today feels very cheap at $60.
With Salford, MacDon, and Skyjack I feel like Linamar is creating a nice opportunity to deploy further capital through the industrial segment over the comning years. The medical device segment could also pose an opportunity to deploy capital at attractive returns.
When I look out a few years I have the view that between the NCIB and business growth, the EPS could be in the low teens and the mix of business (less reliant on the mobile segment) could be at a slightly higher multiple than what the market has traditionally paid for Linamar (~4x EBITDA or 10x earnings).
Best of luck,
LR