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Canadian manufacturing companies to buy?


Hawks
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The weaker Cdn dollar versus U.S. should benefit Canadian manufacturers selling into the American market since their quotes will be more competitive than their U.S. counterparts. Might take 6-12 months for this effect to show up on earnings. One example would be ATS Automation (ata on TSX).

Anyone have other names to add?

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The weaker Cdn dollar versus U.S. should benefit Canadian manufacturers selling into the American market since their quotes will be more competitive than their U.S. counterparts. Might take 6-12 months for this effect to show up on earnings. One example would be ATS Automation (ata on TSX).

Anyone have other names to add?

 

for all of those forayed into fortress paper, i am wondering if it can finally start to turn the corner due to the weak CAD?

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Anyone have other names to add?

 

Martinrea (MRE.TO). Trading at a deep discount to peers due to a pending lawsuit by a former board vice-chairman.

 

RBC analyst report:

 

Martinrea reports in CAD, though produces a substantial portion of its revenue from other currencies (mainly the USD and EUR). The company attempts to create natural hedges where possible through localized production, and it has hedging programs in place where this is not possible. At the end of 2012, the company estimated that a 10% change in the USD/CAD FX rate would affect earnings by 1%. However, MRE produced nearly 35% of its revenue from the US, and due to reporting in CAD, it would likely see a material translational benefit in revenue from a depreciating CAD.

 

 

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