Superior Industries International, Inc. (NYSE:SUP)

CAPS Rating: 4 out of 5

The Company designs and manufactures of aluminum road wheels for sale to original equipment manufacturers.


Player Avatar TMFDeej (99.26) Submitted: 12/7/2012 2:40:37 PM : Outperform Start Price: $18.19 SUP Score: -2.59

As someone who works in the auto industry I can tell you that it has come roaring back and that business is pretty good. That's good news for a supplier like Superior. Combine that with a solid dividend, no debt and potential activist involvement from one of my favorite investors, Mario Gabelli, and we have the makings of an investment that will likely outperform.Deej

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Member Avatar vjportlim (47.86) Submitted: 12/10/2012 9:27:03 AM
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Hi Deej,
As someone in the industry, do you feel that it really is coming back or that it has been artificially propped up?

Member Avatar TMFDeej (99.26) Submitted: 12/10/2012 4:34:58 PM
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Good question. There's absolutely no doubt that credit has loosened up quite a bit in the auto sector over the past several years. However, a significant portion of that is likely just easing back on the over-tightening that wend on in the aftermath of the credit crisis. I personally have not seen anything that I would consider to be egregious in terms of banks being too loose in their lending standards in general, but you never know for certain what's going on behind the scenes. For now as far as I can tell, the uptick in auto sales has been pretty real, and not even nearly as fuled by incentives as some of the sales surges that we've seen in the past.


Member Avatar elcid24 (80.73) Submitted: 12/21/2012 10:44:15 AM
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You also might want to include the fact that cash accounts for about 40% of the market cap. You know, if you're into that kind of thing. :)

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