Darspal S Mann
Long/short equity, growth at reasonable price, special situations, deep value

Magna: A Big Old Tree In A Storm That Is Hitting The Auto Industry

Magna International (MGA), as one of the largest automotive supplier, seems to be stuck in a unique position, where the headwinds faced by the global auto industry are about to hit the business, but the benefits reaped by a big portion of the auto component industry mostly bypassed the company. The business seems to be facing a 'too large to deliver' problem and the stock has so far failed to present any catalysts that can help avoid the 'value trap' classification. The fundamentals, of industry and the business, are taking a turn for the worse, thus deserving a closer look.

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Image Source: Magna International annual report

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