Linamar: A low-key winner

Article Excerpt

A key part of our three-pronged investing strategy is to downplay stocks in the broker/media limelight (the other two are invest mainly in well-established companies and spread your money across the five main economic sectors). Linamar is a good example of an out-of-the-limelight stock. Few brokers cover it, partly because its cyclical auto and industrial parts are not as exciting as, say, computer technologies. As well, the family of Linamar’s founder own 23.6% of the outstanding shares, which limits the possibility of a takeover. However, the company’s expertise helped it rebound strongly from the 2008 financial crisis and the bankruptcy of GM and Chrysler, two of its biggest clients. Today, it’s winning deals to supply engine parts to other automakers and industrial firms, and growing beyond North America. Linamar also stands to gain as carmakers rely more heavily on suppliers to help them meet tougher emission regulations. LINAMAR CORP. $66 (Toronto symbol LNR; Aggressive Growth Portfolio, Manufacturing & Industry sector;…