Ticker: MGA, Buy below $50.

Magna International is leading global automotive supplier.

Why I Would Buy

1. Cheap – Magna trades at < 8x earnings.
2. Reducing Sharecount – Magna is aggressively buying back stock.   
3.  Low Payout – The dividend payout ratio is below 20%, while the yield is 3% +.
4. High ROE – Return on Equity > 10% for past few years.
5. Low Debt – Debt to Equity is just 30%.

What Could Go Wrong

1. Trade War – Trade War with China is weighing the stock down.
2. Cyclicality – Automobiles are a cyclical industry which is possibly at it’s peak right now.

Disclosure: I am long MGA, please read additional disclosures here before taking any action based on this post.