This is just a short post on why I believe Linamar is a great value play right now and why I bought it.
I bought the stock last week on a positive NAFTA solution as the stock continued to drift lower on bad news. This is another stock on my gambling list that I'm just taking a short term punt on hoping to make 20-25% on my $4K bet.
I bought 70 shares @$57.71 on 29 August. Today the stock finally turned into the green on a 5.7% pop on news from Trump that Canada & the US are really close to a deal. This is going to happen and I'm expecting LNR to get close to it's old high of over $80.
I love the long runway here to make money based on it's 52 week trading range. Let's look some numbers;
Beta: 0.73
I bought the stock last week on a positive NAFTA solution as the stock continued to drift lower on bad news. This is another stock on my gambling list that I'm just taking a short term punt on hoping to make 20-25% on my $4K bet.
I bought 70 shares @$57.71 on 29 August. Today the stock finally turned into the green on a 5.7% pop on news from Trump that Canada & the US are really close to a deal. This is going to happen and I'm expecting LNR to get close to it's old high of over $80.
I love the long runway here to make money based on it's 52 week trading range. Let's look some numbers;
Beta: 0.73
ROE: 18.5%
Forward P/E: 6.4
EPS Growth: 22%%
Revenue: $7BM, per share =110
Debt: $2.5B
Forward Dividend: 0.87%
Payout Ratio 5%
Forward Dividend: 0.87%
Payout Ratio 5%
Price Paid: $57.71
52 week high: $80.58
CEO Linda Hasenfratz bought 17,000 shares on the same day I did. This is a great sign and something to believe in when the company has this much insider activity from the top. That was a $1M bet on her part. The stock gained $3.19 yesterday.
If you like to buy value stocks then LNR fits your bill. It has been hammered with the recent steel and aluminum tariffs and market sentiment has turned negative since the trade spat began.
We have the US Congress on our side as they need to be consulted before any trade pact goes ahead without Canada.
Do you think the CEO bought a million dollars worth of shares because she believes the stock is going down?
It was only in May that the stock traded @$80. It's now going sideways in the $50's.
There is a lot of value here and I'm betting that the CEO can unlock all the potential that this consumer cyclical stock has to offer. Worth a punt to me as I am betting all the risk is to the upside.
"You don't make money on the buying or selling of a stock, the money is made in the holding" - Charlie Munger
If you are looking at ways to save money this new book The Cashflow Cookbook can help you find some savings to then use to invest.
If you are having trouble getting your financial house in order and organized then you need to read Worry Free Money.
If you are further looking for portfolio ideas then you might find my review of The 6-Pack Portfolio a way for you to get started on your investing journey. All of our retirement money is invested in this manner. We just hold more than 6 positions.
CEO Linda Hasenfratz bought 17,000 shares on the same day I did. This is a great sign and something to believe in when the company has this much insider activity from the top. That was a $1M bet on her part. The stock gained $3.19 yesterday.
If you like to buy value stocks then LNR fits your bill. It has been hammered with the recent steel and aluminum tariffs and market sentiment has turned negative since the trade spat began.
We have the US Congress on our side as they need to be consulted before any trade pact goes ahead without Canada.
Do you think the CEO bought a million dollars worth of shares because she believes the stock is going down?
It was only in May that the stock traded @$80. It's now going sideways in the $50's.
There is a lot of value here and I'm betting that the CEO can unlock all the potential that this consumer cyclical stock has to offer. Worth a punt to me as I am betting all the risk is to the upside.
"You don't make money on the buying or selling of a stock, the money is made in the holding" - Charlie Munger
I NEVER SPECULATE WITH MY RETIREMENT MONEY. THIS IS ALL INVESTED IN DG STOCKS FOR INCOME
Looking for Saving Ideas so You Can Invest?
If you are looking at ways to save money this new book The Cashflow Cookbook can help you find some savings to then use to invest.
If you are having trouble getting your financial house in order and organized then you need to read Worry Free Money.
If you are further looking for portfolio ideas then you might find my review of The 6-Pack Portfolio a way for you to get started on your investing journey. All of our retirement money is invested in this manner. We just hold more than 6 positions.
If you want to read more about the theory and methodology of some of Canada's professional investment/portfolio managers then you need to pick up a copy of the book 'Market Masters'. Robin Speziale conducts interviews with top money mangers in Canada using a set of pre-arranged questions. This will give you a real insight into how others invest money and how they think. A must read!
Would you buy Linamar or do you own it?
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