Trade war threat weighs on Linamar

Article Excerpt

LINAMAR CORP. $66 (Toronto symbol LNR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 65.4 million; Market cap: $4.3 billion; Price-to-sales ratio: 0.7; Dividend yield: 0.6%; TSINetwork Rating: Average; www.linamar.com) has moved down lately, mainly in response to the Trump administration’s decision to impose new tariffs on imports of steel and aluminum. That could increase the cost of new cars, and hurt demand for Linamar’s automotive parts. Those include cylinder heads, cylinder blocks, camshafts, crankshafts and connecting rods. As part of NAFTA negotiations, the U.S. wants new cars to contain 70% North American materials. That could lift the company’s prospects. Linamar is still a buy.   buy.  …