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Bullboard - Stock Discussion Forum Linamar Corp T.LNR

Alternate Symbol(s):  LIMAF

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... see more

TSX:LNR - Post Discussion

Linamar Corp > Historical times
View:
Post by ValueBets on Nov 04, 2024 11:41am

Historical times

In 2022, 4M shares were bought back at around 59$ on average (around 6% of shares)

Since then, around 1G$ in profits (over 2 years), mainly directed toward acquisitions, mainly in the AG Business. Substantial investments to mitigate the EV transition timing and to stay in the game over the LT.

-Book value up significantly, we will end 2024 with around 95$/shares.
-Best diversification ever in term of segments and geography.
-The current industrial/mobility mix provide great FCF sustainability that was previously lacking with over exposure to the cyclical needs on the mobility side.

Focus clearly on the margins side for a while, after these big changes, and perhaps why Linda is focussing on the costs attack teams from now on.

We now have the opportunity to buy the stock under 57$?

The Magna NCIB last week was strongly positive to the stock. Also, allowed us to see what we could be up to on the mobility side in Q3 and beyond.

What are we up too, big news next week? 

Exciting times, I don't think I've ever owned (and will ever own again) a stock so cheap and, at the same time, one that has this kind of recurring businesses and a so strong balance sheet.

Comment by Jonathan9 on Nov 04, 2024 1:11pm
I think you could see a NCIB announcement with earnings. I don't expect they will use it (unless stock keeps dropping). My guess is they will prioritize debt repayment, gearing up for the next acquisition in 2025? Uncertainty is the issue. Last buyback did not help stock price. My guess is they want to keep flexibility for the long term. Growth has always been the priority. I added to my ...more  
Comment by ValueBets on Nov 04, 2024 3:37pm
Great to hear from others who are motivated to add to their portfolio right now, like I also did. With significant FCF for the next 1-2 years, I think multiples objectives can be pursued. I also think sharebuyback will be no catalyst to the stock price, even if I'd like it for long term potential apprecition once multiples get back to normal.  I also think this will not be a ...more  
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