Ivan K. Wu
Long only, value, contrarian, long-term horizon

Linamar: Runaway Powertrain Priced At Recession Levels

I. Introduction

Linamar (OTCPK:LIMAF) is a Canada based auto parts supplier (trading as LNR on the TSX) that operates primarily in the Powertrain/Driveline segment. It's the second largest automotive supplier in Canada after Magna International (NYSE:MGA) and competes with OEM suppliers around the world. Linmar derives 60% of its automotive revenues from North America, 30% from Europe, and 10% from Asia (mainly China and India).

In addition to its Powertrain/Driveline business (85% of revenues), the company manufactures industrial work platforms under the Skyjack brand, a niche market that Linamar dominates with a >40% market share. Barriers to entry are high as the top three manufacturers account for 98.9% of the market. Linamar estimates that the

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