Linamar Corp T.LNR

Crazy business....

[packerdriver]

We take a hit today because Scotia says:
"sentiment and valuations are likely near the BOTTOM, but he said that there is little reason to believe industry conditions and share prices improve in the NEAR-term." ???
In my book that's called a long term buying opportunity/gift!!!  PE of SIX? !!! His LOWERED one year price target is almost 20 bucks higher than the SP today??? My "screaming buy" alarm is going off.
Been a holder for a long time, green in one account, red in the other....just waiting to pounce today or tomorrow.....(I don't do "near term"....I'm a 2-3 year guy at the least)

Slightly related: I'm sort of wondering about Scotia in general....their "new and improved" platform is a BIG FAIL in my opinion (I moved one account to TD and I'll move the other over before the end of the year, when Scotia ditches the old platform permanently). The change reminds me of the 1996-7 Ford Taurus story...their best seller at the time (800,000 units) Ford decided to "refresh" the brand by going with an "all oval" concept copying the Ford logo....complete with an oval rear window......sales dropped from 800k to 300k in a year.....OUCH! (If it ain't broke, don't fix it!)

[ValueBets]

I agree : this is out of proportion! With a 0,65 book value, low debt, ridiculous PE and EV/Ebitda..  After Ford stock drop masively today, a drop mainly bottom line driven, losts on the EV side (what is the direct impact for LNR/MG/MRE?), these CAD car components stocks are droping equally of 4%? But LNR only drive 50% of profits from its mobility business compare to the other two? Ford is

[packerdriver]

Do we have the cash to do that?? If so I'm with you 100% on that idea...accretive and demonstrate confidence....what's not to like?

[ValueBets]

Yes we do! First, 10% would mean buying back 6,1M shares at lets say 70$, so a total of 430M. After that, in the August presentation (Q2), cash available on credit facilities was around 550M$. More importantly, with limited organic growth expected on the mobility side, and lets presume no acquisition about to close, we would generate above 500M$ free cash flow per year (just like 2019, 2020,2021

[longrun86]

Everyone agrees that buying back shares is a great idea at this price and on the last earnings call they definitely faced pressure to do that; however, they have not been active with any buybacks thusfar. I am dissapointed in their lack of action. I agree that buying back shares at this price is warranted but I would like them to indicate more broadly what their capital allocation framework would