Why the Shorts Are Wrong About This Stock

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The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes and consumer goods editor/analyst Austin Smith discuss topics across the investing world.

In today's edition, Brendan and Austin take a look at BorgWarner, an auto parts manufacturer with a high short percentage at 10% of its float. Brendan disagrees with the shorts here; he thinks BorgWarner is a solid buy candidate. The company makes, among other things, turbochargers for both gas and diesel vehicles, and dual clutch technology. This technology should be in greater demand in the future as much more strignent corporate average fuel economy standards kick in. That should propel demand for BorgWarner's products, along with a solid network of customers that includes almost every major automaker. Check out the video below for more on BorgWarner's future prospects.

While BorgWarner looks like a solid pick for growth in the future, our chief investment officer has picked out one stock that has us so excited we can hardly contain our investing enthusiasm. This pick has so much promise that we've dubbed it "The Motley Fool's Top Stock for 2012." We've created a special free report for investors to uncover this soon-to-be rock star. The report highlights a company that is revolutionizing commerce in Latin America, and you can get instant access to the name of this company by clicking here to download it now.

At the time this article was published Austin Smithhas no positions in the stocks mentioned above.Brendan Byrnesowns shares of Ford. The Motley Fool owns shares of Ford.Motley Fool newsletter services recommendBorgWarner, Ford, and General Motors. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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