FWIW, Although looking to add to my position in Dana(DCN) (pe 7, 1.5x bv, good ROE, 4.5% div, d/e @ .8), it seems many oem auto parts suppliers are near lows and might be worth investigating further. Some of these companies have relatively (to the market) low p/e's, are close to book value, and sometimes even pay a dividend. Given that it's a tough competitive and cyclical industry - maybe very cyclical (the earnings go poof?)--- and it almost seems like it could be like the out-of-favor-the-boom-is-over housing stocks -- maybe it's time to focus on the industry in more detail.
Here are some stocks I am starting to look at, based on a scan through Yahoo.
Arvin Industries (ARV) (pe 7, 1.1 bv)
Borg-Warner Automotive(BWA) (pe 8, near bv)
Durra Automotive (DRRA) (pe 6, .6 bv, lotta cash; lotta debt)
Tower Automotive(TWR) (pe 8, close to bv)
Wabash National (WNC) (niche player-trailers, pe 14, at bv)
Anybody got an opinion on these or others?
Paul Senior |
