Adding Position in Linamar
Linamar Corporation (LNR) is a machine parts manufacturer that operates through two segments: the Powertrain/Driveline and the Industrial. The segments include: Machining & Assembly, Light Metal Casting, Forging and Skyjack. The Company's Skyjack operating group is noted for its mobile aerial work platforms. The Company provides core engine components, including cylinder blocks and heads, camshafts and connecting rods. For transmission, it builds differential assemblies, gear sets, shaft and shell assemblies, as well as clutch modules.
[PostStockWidget stock_valuation="" pricetype="live" manual_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'LNR.TO'" symbolprices="53" div_align="right"]
This car parts maker is generating record profits, yet the company’s valuation is at levels comparable to the worst of 2009.
With a low PE, a rising dividend, good cash flow and large insider positions it has all the elements that we look for in an investment that has a good chance of reaching its target.
Purple Chips 12 -18 month target is: $USD 69.00
ADDING LINAMAR CORP AT $51.80 (LNR-T) FULL POSITION
PURPLE CHIPS TARGET: $69.00 POSITION SIZE: FULL (5.0%) P/E: 8.01X DIV: $.40 (0.77%) MKT CAP: $3.3B Debt: $1.3B NOPCF per share: 174% EARNINGS YIELD: 13.1% 5 YR EPS Growth rate*:10% P/E/G Ratio: 0.8X 2016 EPS: $6.88 2017 EST.: $8.11 2018 EST.: $8.99
*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.
