Put These Names on a Fast Track

The struggling, bailed-out, has-been U.S. auto industry has attracted the attention of the Chinese. The New York Times reports that the Detroit Chinese Business Association has about 100 Chinese-owned business members in the Detroit area, mostly auto related. The point is that the American auto industry, on its knees four years ago, has made a startling comeback. Using my guru strategies, which are computerized analytical tools based on the writings of some of Wall Street's greatest investors, I have identified three auto-related companies to watch. The Chinese don't have to be the only ones riding Detroit's coattails.

Magna International (MGA) is a major auto parts supplier. The company describes itself as the most diversified automotive supplier in the world, which should give it a competitive advantage over smaller, less diversified suppliers. My Peter Lynch-based strategy rates Magna highly. This strategy focuses on the PEG ratio, which is price-to-earnings relative to growth and measures how much the investor is paying for growth given the stock's current price. Magna's yield-adjusted PEG is 0.87, below the 1.0 maximum allowed. Another plus for Magna is its very low level of debt....208 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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