MGA Magna International

[nodoodahs]

Second largest auto parts manufacturer after Johnson Controls. They do pretty much everything including OEM replacement parts, new vehicle subassemblies, etc., for Chrysler, Ford, Mercedes, and have plants across the U.S., Canada, and Europe.

Second quarter earnings beat expectations but they revised guidance down for 2006.

I got it at a discount in April after they were punished for missing expectations. Rode it from $62.70 to $78.34. I don't know how the market will react to the revised guidance so I am putting in a stop at $76.18 to preserve some gain (a first use of stop loss orders for me).

If it falls to $70.85 I could pick it up again for "free" even after tax. If it doesn't fall that far I will put the bundle into something else. Falling that far would preserve the same forward PE as it has now under the higher old guidance.

Mentioning this because "Mr. Market" often overreacts and this might make a good trade if it falls as far as I fear. If on the other hand, "Mr. Market" focuses on the good news (beating expectations in 2Q05) I lose nothing.
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I haven’t seen a beatin’ like that since somebody stuck a banana in my pants and turned a monkey loose.

[nodoodahs]

With Ford consolidating it's suppliers, MGA is listed as one of the lucky ones remaining and may stand to gain more business as a result.
_________________
I haven’t seen a beatin’ like that since somebody stuck a banana in my pants and turned a monkey loose.

[nodoodahs]

Doesn't look like it'll go down as far as I thought. Nice gap on the first day, though.
_________________
I haven’t seen a beatin’ like that since somebody stuck a banana in my pants and turned a monkey loose.