By J. Royden Ward, Editor of Cabot Benjamin Graham Value Letter
From Cabot Wealth Advisory 2/17/11 Sign up for free Cabot Wealth Advisory e-newsletter
TRW Automotive (TRW) is a world-wide supplier of automotive systems and components to automotive original equipment manufacturers (OEMs). The company’s operations primarily encompass the design, manufacture and sale of safety related products. Products include braking and steering systems, airbags and seat belts and crash sensors.
TRW is aggressively expanding operations in Brazil and China to meet customer desire. Demand in the U.S. is also picking up, and auto sales in Europe, where TRW has a large presence, should start to see improvement in the second half of 2011. I believe earnings per share will increase 19% per year during the next five years. At 10.4 times EPS, TRW shares are a bargain.
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J. Royden Ward
Editor of Cabot Benjamin Graham Value Letter
A lifelong investment professional, J. Royden Ward applies his 40 years of investment research, portfolio management, writing and publishing experience to his role as analyst and editor of Cabot Benjamin Graham Value Letter, which is directed to long-term investors seeking a guide to profitable value investing based on the time-tested systems originally developed by Benjamin Graham, the Father of Value Investing. A second-generation disciple of Benjamin Graham, Roy in 1969 pioneered the development of a computerized model that applied the formulas developed by Graham using a unique ranking system. Today, Roy applies his system to two models in the Value Letter.