LEA

Lear Corp

Industrial/Transportation, Event Driven/Special Sit


Presented:05/02/2013
Price:$57.49
Cap:$5.32B
Current Price:$104.60
Cap:$5.88B

Presented

Date05/02/2013
Price$57.49
Market Cap$5.32B
Ent Value$4.90B
P/E Ratio13.11x
Book Value$37.92
Div Yield0.9%
Shares O/S92.46M
Ave Daily Vol1,020,000
Short Int1.19%

Current

Price$104.60
Market Cap$5.88B
Lear Corporation designs, manufactures, assembles, and supplies automotive seat systems, electrical distribution systems, and related components primarily to automotive original equipment manufacturers. It operates in two segments, Seating and Electrical Power Management Systems (EPMS). The Seating segment offers seat systems and related components, such as seat frames, recliner mechanisms, seat tracks, seat trim covers, headrests, and seat foams for automobiles and light trucks. The EPMS segment provides electrical distribution systems and components for traditional power train vehicles, as well as for hybrid and electric vehicles. This segment’s products comprise wire harness assemblies, terminals and connectors, junction boxes, fuse boxes, and electronic control modules, as well as wireless remote control devices, such as key fobs. It also provides passive entry systems, remote keyless entry, and dual range/dual function remote keyless entry systems; LED lighting control systems for the vehicle interior and exterior; and audio systems, such as amplifiers and vehicle sound systems. The company sells its products primarily in North America, South America, Europe, and Asia. Lear Corporation was founded in 1917 and is headquartered in Southfield, Michigan.

Highlights

The presenter is long shares of Lear (LEA) and his firm recently took an activist role (fully disclosed to the market via 13D filing) with the company, and successfully argued for management to deploy cash in the form of buy backs to create shareholder value. He noted LEA sat on ~$1.6 billion in cash (~1/3 of its market cap) for nearly three years, and has finally begun to deploy it.

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Idea Discussion

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