Finding Sweet Spots in Mid-Caps

Q: Considering all the troubles at Ford (F ) and General Motors (GM ), why do you like parts supplier BorgWarner?

A: That's a good question. There is a cloud over them, but in our opinion it's not justified. BorgWarner does have a very attractive growth rate -- they're specializing in turbochargers for diesel engines, and given the high gas prices in Europe, 40% of cars use diesel engines. You do get 30% better mileage with diesel.

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