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Martinrea International Inc. (MRE.TO)

Toronto - Toronto Real Time Price. Currency in CAD
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8.55-0.07 (-0.81%)
At close: 04:00PM EDT

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  • A
    Anonymous
    Crashing again WIth Lnr down 10% these Auto stocks were to drop like this as interest rates going Up any News On Lnr.to any way
  • A
    Alex
    What’s with the crazy volume today ?
    Takeover target ?
  • W
    Wes
    Wow what a drop this week.
  • A
    Alex
    Nailed it .32 EPS
  • O
    Omar
    still feel this is a great stock for long term post pandemic when demand on auto parts increase
  • A
    Alex
    EPS expected. .28 my guess it will be .32
    Earnings will be a significant beat
  • A
    AndyV
    Hmm, no good new unfortunately, Looks like parts manufacturers are afraid to pass their rising costs to automakers. Eventually they will, but it will take time. But the overall demand will probably drop with rising consumer prices. So maybe it’s time to reduce exposure to manufacturing sector and stick with commodities for now. Any thoughts?
  • A
    Analytica
    Bloomberg Market Call Top Pick again!

    John Zechner's Top Picks: August 23, 2021
    BNN Bloomberg

    John Zechner's Top Picks
    Now ShowingJohn Zechner's Top Picks6:58
    John Zechner's Top Picks

    Up NextJohn Zechner's Past Picks5:14
    John Zechner's Past Picks

    Market Call for Monday, August 23, 202146:07
    Market Call for Monday, August 23, 2021

    John Zechner, founder & chairman, J. Zechner Associates
    FOCUS: North American large cap stocks
    MARKET OUTLOOK:

    After stocks have more than doubled from 2020 lows with only two minor pullbacks, valuations at record highs and speculation rampant in many asset classes, it should come as no surprise that the market has been at risk for a correction. The worries about the growing spread of the Delta variant of COVID, some more hawkish chatter from U.S. Fed governors, further weakness in the Chinese and European economic data and current geo-political risk in the Mideast seem to be heightening all these fears during the typical period of slower summer trading activity.

    While the S&P 500 is only down 2 per cent from its recent all-time high, the damage to the economic cyclical sectors has been much more severe in the past few months as fears about the ending of stimulus payments and risks about the re-opening have damaged the outlook for many commodity and ‘value-oriented’ sectors.
    Strength in the large technology stocks in the U.S. (over 30 per cent of the index) and the banks in Canada have lessened the impact on the major averages, but the more broadly based and domestic Russell2000 Index in the U.S. is now down over 10 per cent from its May peak while the energy sector in Canada has absorbed the bulk of the selling here, dropping over 20 per cent from its June high.

    After raising some cash in May-June we are looking to add back to stocks on the current weakness. While the spread of Delta is leading to some sharp weakness in global economic data (Citi Economic Surprise Index, retail sales, consumer sentiment) we still believe we are early in the recovery cycle that began last spring. The initial surge in growth is giving way to a more modest expansion and that downshift typically leads to more volatile markets. But most of the slowdown issues we see are related to supply constraints as opposed to demand slowdowns. As these bottlenecks clear, we expect that this cycle could be prolonged, particularly since the fiscal and monetary supports are expected to remain in place for some time.

    While technology and health care will be the key growth sectors over the longer term, we are seeing opportunities in the space segment, renewable energy and the auto/parts sectors for their penetration into electric vehicles and autonomous driving. We are also adding back to energy stocks. While the very long term outlook for this sector is not bullish, the stocks are not even close to reflecting oil prices in the US$60 range and stronger natural gas prices. We have also added to the gold stocks. Valuations are at multi-decade lows and the massive expansion of the global money supply and negative real interest rates will provide a tailwind for real assets in fixed supply such as gold.

    TOP PICKS:

    John Zechner's Top Picks
    John Zechner, chairman and founder of J. Zechner Associates, discusses his top picks: Martinrea International Inc., ARC Resources, and MDA Ltd.

    Martinrea International (MRE TSX)
    Latest purchase $12.00 – August 2021
    This stock is at exceptionally low valuation but has been hurt by the recent global chip shortage and its impact on auto production. They have a strong balance sheet and generate positive free cash flow and should see a significant recovery in growth as auto production ramps back up. It has a focus on the ‘lightweighting’ of vehicles through greater use of aluminum parts, a key factor in meeting the growing demand for electric vehicles. MRE had the added benefit of an investment in VoltaXplore, which gives it EV battery exposure. The heavily-discounted valuation provides an opportunity much like it did at market lows in 2009 and 2016. Insiders at the company have also been active buyers of the stock recently, another endorsement of the attractive valuation and growth.
  • A
    Alex
    Management bought stock….. so I did…maybe logic paid off, we’ll see tomorrow if market doesn’t melt down again.
  • j
    john
    Big overreaction, strong company running into industry wide issues. I don’t like seeing this stock so far in the red, but on the other hand it presents a nice buying opportunity.
  • J
    Jamie
    Quite the run, 50% since October! Finally the stock is making new 52-week highs.. and it's still at only 6X earnings. The fear that MRE was going to be in a death-spiral was misplaced. Management is doing well and the company is positioned well for the transition to EVs with their focus on light-weighting and fluids (EVs still need brake fluid!).
  • m
    mark
    Magna will scoop mre thoughts
  • W
    Wes
    This stock is not paying attention to my feelings this morning.
  • W
    Wes
    Holding not bad considering the overall market. I added my last bit of cash at 9.60.
  • y
    yaoyao
    the company should immediately suspend dividend and buy back shares instead.
  • A
    Analytica
    Top Pick On Bloomberg Market call!
    MARKET CALL

    Investing
    Jun 18, 2021

    John Zechner's Top Picks: June 18, 2021
    BNN Bloomberg

    John Zechner's Top Picks
    Now ShowingJohn Zechner's Top Picks4:35
    John Zechner's Top Picks

    Up NextJohn Zechner's Past Picks5:00
    John Zechner's Past Picks

    John Zechner, chairman and founder of J. Zechner Associates

    Focus: North American large cap stocks

    MARKET OUTLOOK:

    The value/cyclical/resource sectors have lead the stock market for most of this year, helping the Canadian market outpace the U.S. for only the second time in the past decade. But in the past month we have seen a return to the ‘high growth’ names as the U.S. Fed, in particular, supports continued monetary ease on the belief that current surge in inflation will be transitory. The perplexing rally in bonds at a time when inflation and economic growth each hit 13-year highs is indicative of both a belief economic growth may fade as stimulus slows down and the continued US$120 billion monthly buying by the Fed. Bottom line for now is that ‘the markets seem to be buying what the Fed is selling!’

    However, we expect that supply chain distortions, growing demand from the re-opening and an underinvestment in commodities and infrastructure over the past decade will keep cyclical inflationary pressures in place longer than investors might expect. We therefore have been adding to cyclical exposure on weakness, particularly in financials, energy and industrials. Our target weight for these sectors in our stock portfolios is 60-70 per cent. The longer-term trend toward disinflation from globalization and increased technology remain in place, which argues for holding 20-30 per cent of stocks in large cap growth stocks with reasonable valuations in health care, tech and telecom. We remain overweight preferred shares as slightly higher interest rates and stronger credit conditions fuel buying in that asset class but are underweight bonds where we see little, if any, absolute return potential and would rather just hold cash as a hedge against any market volatility and look for buying opportunities if any weakness occurs in stocks


    TOP PICKS:
    John Zechner's Top Picks
    John Zechner, chairman and founder of J. Zechner Associates, discusses his top picks: Martinrea, MDA Ltd, and VanEck Vectors Semiconductor ETF.

    Martinrea International (MRE TSX) Latest purchase $13.00 May, 2021

    This stock has multiple attractions as it has an exceptionally low valuation but some earnings cyclicality that will allow it to outperform strongly as the global economic recovery continues. The company has a strong balance sheet and generates positive free cash flow. It has a focus on the ‘lightweighting’ of vehicles through greater use of aluminum parts, a key factor in meeting the growing demand for electric vehicles without the associated valuation risks. Martinrea International had the added benefit of an investment in VoltaXplore, which gives it EV battery exposure. The heavily discounted valuation provides an opportunity much like it did at market lows in 2009 and 2016. Insiders at the company have also been active buyers of the stock recently, another endorsement of the attractive valuation and growth.
  • B
    BOOOYA
    lots of insider buying, hopefully something positive coming?
    On the 8th of March, Armando Pagliari bought around 11k shares on-market at roughly CA$8.10 per share. In the last 3 months, there was an even bigger purchase from another insider worth CA$131k. Insiders have collectively bought CA$1.4m more in shares than they have sold in the last 12 months.
  • y
    yasser
    I bought this like two years ago near the top and I just want to break even and leave
  • O
    Omar
    the baby brother on Magna international. with economic recovery, this stock will benefit and will see prices in 40-50 in few years time. mark my word