Linamar Corp T.LNR

Jason Mann - BNN - Top Pick

[Possibleidiot01]

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.

[RusticHit]

and she crashed badly today any news ??

[Goldenwest]

Can't find any news, although Martinrea is down fairly heavily as well, so I'm guessing it's recessionary sentiment/world events driving the dip. I added a few shares at these levels. Seems to me a good company and well managed. May run into cyclical challenges, but somewhere along the line I think it gets up to much higher levels. My $0.02.

[RusticHit]

Linda Poorer by so many hundres of millions today and i am down fking lot with tehse falling daggers Mre and Lnr why the fk i always got hurt by the falling daggers