BorgWarner, Inc. (NYSE:BWA)

The numbers are insane. The business is WAY over my head. 2 keys to a great company.

Resistance is futile.
You will be assimilated.

Lots of growth in Asia & Europe for performance and fuel economy powertrain components

fast money

This company is well positioned for future growth in fuel economy and drivetrain.

it's not-so-competitive market combined with the high demand over its products among major car manufacturers must yield higher EPS leading to higher stock value

Demand for diesel and smaller engines will continue to play to BorgWarner’s Strength.

if BWA can research and jump on the hybird gravytrain. ie lighter and more efficent parts. more durable. still everything wears out. not everyone will buy hybrids or small cars. this is a good stock no matter what happens. till the oil runs out.

Long-term underperform. Poorly managed. Overvalued & overpriced at $79.

(BWA)Slow but steady growth!!

Borg Warner is promenient in building high tech, high efficiency, low emission engine systems. They are in a partnership with the EPA to develop low emission diesel engines. Look for a major conversion in large trucks and school buses. We might see some mandates from the global warming regulations.

3

Strong automotive product portfolio. Flat '06 sales growth and large OEM losses will lead to strong comeback in 07-08. Several new products will help win significant new business.

well run operation.

Outstanding Company. Rock Solid Management. Excellent Balance Sheet.

BorgWarner is a leading global supplier of highly engineered systems and components mainly for power train applications for the world's major automakers. Its Engine Group, which develops products to manage engines for fuel efficiency and reduced emissions, contributed 70% of revenues in 2005. Its Drive Train Group, which accounts for around 30% of revenues, develops transmission components and systems for torque management applications.

Since past couple of years automakers are faced with the global need to reduce emissions, improve fuel economy and increase the performance of vehicles, and this translates into a huge opportunity for company’s Engine group products. Very recently the company has opened a new manufacturing facility in France, to meet the increasing European demand for dual clutch transmission technology. Europe continues to be the fastest growing market with revenues growing at 43% annually from past two years

Strong growth in vehicle production in the Asian markets mainly China, India and Korea, have driven the demand for the company’s high-performance engine timing systems. The presence in these emerging markets will further boost up the demand for its products. BorgWarner has nearly doubled the size of its Engine Group manufacturing facility in South Korea to support one of its fastest growing customers, Hyundai / Kia.

With all this things’ going on in the market place management is expecting to generate new business worth $1.7 billion spread across through 2007 till 2009, mainly driven by turbochargers, dual clutch transmission and All Wheel Drive systems. Taking these factors into consideration the stock is a good pick for the long-term investors.

Need for gas saving devices will help company outperform market.

The best company in a much maligned industry right now - auto parts. Well positioned for trend in high fuel effeciency and diesel engines.

BWA has a diverse customer base that has helped it continue to grow through slumping US auto market. They have two main divisions: engine & drivetrain. The engine group stands to benefit from a global shift toward stricter emission standards as well as continued growth of diesel engines (primarily Europe & Asian markets). The drivetrain group stands to benefit from the need for greater fuel efficiency and the growth of automatic transmission system cars in a primarily manual transmission market (again Europe & Asia). Management has done an excellent job creating a company culture where people take pride in their work. They also make business decisions and tie compensation to EVA (economic value added), which is a shareholder friendly metric of generating returns in excess of a company's cost of capital.