Seeking Alpha: Continental AG Revving Up For The Next Wave In Autos

If success in a business was always linked to size, Continental AG (OTCPK:CTTAY) would be an easy pick in the auto parts/components space, as this is the third-largest supplier in the world and the second largest in Europe. The auto sector is seeing a lot of change, though, as OEMs have to produce more efficient, less polluting cars to stay in compliance with evolving regulations and the adoption of more electrical and hybrid technologies is likely to lead to disruption across the market.

I believe Continental is well placed to benefit from this transition and to maintain its strong position in the market. It also doesn't hurt the story that the company's tire business is quite profitable and a market share gainer. I think Continental's size does limit its future growth prospects somewhat and the valuation isn't quite as compelling as I'd like to see.

Continue here:
Continental AG Revving Up For The Next Wave In Autos

Seeking Alpha: Is Titan Bottoming Out?

It's been a rough year for most companies that have much to do with the agriculture, earthmoving, or mining vehicle industries. Deere (DE) is up a little, Caterpillar (CAT) is down a little, Joy Global (JOY) is down a little more and the two Titans (Titan Machinery (TITN) and Titan International (TWI)) are down even more. Although AGCO (AGCO) and CNH Global (CNH) are up pretty strongly over the past year, they're more the exception and perhaps benefiting from less reliance on North America.

In any case, Titan International is the stock I'm interested in for this article. This company has had an up-and-down history, with management having something of a history of "I confess … it's not our fault!" excuses for operational issues, but also a cogent plan for building strong share in a variety of growth markets like Eastern Europe and Brazil. Calling a bottom in a stock always runs the risk of making you look stupid later on, and I do see risks that the ag and mining markets could get worse. Even so, unless Titan seriously drops the ball and actually loses share over the coming decade, I think the shares are undervalued today.

Read the full article here:
Is Titan Bottoming Out?