03-03-2015, 11:51 AM
(03-03-2015, 08:51 AM)Joey Batz Wrote:(02-06-2015, 01:16 PM)Roadmap2Retire Wrote: I started investing in MGA last fall. The stock has been fairly flat since then after a minor correction (MGA lowered their 2015 earnings expectations). However, the stock is seriously undervalued and has a great business.
Heres my post detailing why I like it
http://roadmap2retire.com/2014/11/recent...ional-inc/
Great writeup of a great company. I've stayed far, FAR away from the auto industry for many different reasons (I like companies whose products are not so heavily reliant on heavy R&D and annual releases), but the fact is that almost everyone drives. Owning the number one manufacturer of auto parts is a great alternative to owning the auto makers themselves and hoping that people aren't buying the competition or that the auto makers aren't begging Congress for a bailout AGAIN. As you said, almost every car out there has an MGA product somewhere in it. Now THAT'S a business I can get behind.
Which is why I went ahead and invested in it. Thanks for the "hot stock tip"! Don't worry, I did my own research into the company and its figures to see if it was for me or not.
Phew...good to hear that you did your own research and didnt just buy it on my word
Welcome as a fellow investor. As you may have figured, its still undervalued. I am looking to add more to my position once the excitement of div increase and stock split dies down.
The parallel I like to draw with Magna and the auto industry is the position of Qualcomm in the wireless world. No matter which smartphone you buy - you either have a chip from QCOM or a license for which QCOM gets paid a royalty (unless you are a Chinese manufacturer who just refuses to pay *grrr*). These are kind of businesses I like to own!
Disclosure: I am long QCOM and MGA.