Linamar is updated and now rated only Speculative (lower) Buy. Perhaps that is too low a rating given a trailing P/E that is highly attractive at 6.2 and given that as of the Q3 conference call, the company was predicting operating earnings growth in 2020 despite softer markets.
But I worry that Q4 will be quite weak. There was the 20 day GM strike as well as continued impacts of trade wars and weaker auto production in Asia. The stock has recovered a lot to about $48 from lows around $35. I’m concerned about a pull back before or at the time of Q4.
I basically am over-exposed to Linamar and so I reduced my holdings by 23% today. I hate to sell any portion of a stock with a P/E of 6.2 but it seemed prudent.