Any time a CEO steps up to the plate and swings for the fences, it's fun to watch. For shareholders, the vote of confidence given by a leader putting the money where his or her mouth is inspires confidence and loyalty to a bigger cause. Such is the case for Linamar Corp.'s (TSX:LNR) CEO Linda Hasenfratz.
Ms. Hasenfratz has continued to buy shares in the company which was originally started by her father over the years, compiling an impressive portfolio of shares worth more than $15 million.
She recently pumped $2.2 million of her own money into shares of Linamar, bolstering her position in the maker of auto parts and drivetrains. The company has continued to grow sales in new product channels, diversifying revenues away from the auto sector toward agricultural and mobile industrial equipment, moves that the company hopes will pay big dividends over the long run.
Shares of Linamar appear to be attractive at current levels, given the valuation multiple the company trades at today. For value investors, taking a look at a company who has the true backing of its CEO seems like a great place to start.
As always, a reminder that insider selling is in no way an indication of the direction a stock is expected to move in the near-term, and long-term investors should assess the fundamentals of said company and consult an investment advisor before making any purchases.
Invest wisely, my friends.
