Monday, October 27, 2008

Linamar Corporation 2

As I said yesterday, this stock, (TSX-LNR), is not on any on the Dividend Achievers list, nor is it on Mike Higgs’. It is a stock that I notice has been recommended lately as good value.

Today I looked at the June 2008 quarterly report on this stock and also, what analysts are saying about this stock. For the analysts I checked, some have a Hold rating on this stock and some have a Buy rating on this stock. They seem to be evenly split. There is lots of insider buying on the stock and this is a very good sign. Today’s price of $8.04 is quite a bit below the Graham Price of $20.44 and this, of course, is good.

However, no one expects that the Earnings per Share (EPS) will be as good in 2008 or 2009 as it has been for the last several years. The Accrual Ratio has come down to 5.9% from 10%, but anything over 5% is very high. It is hard to say if this is a good buy or not. I think that there are probably better buys with less risk. This stock would be considered a medium risk.

Linamar Corporation is a diversified global manufacturing company of highly engineered products. It is a world-class designer and diversified manufacturer of precision metallic components and systems for the automotive industry, and mobile industrial markets. Its web site is See my spreadsheet at I am reloading my spreadsheet with the June 2008 figures.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at for a list of the stocks for which I have put up spreadsheets on my web site.

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