It went up like 50% in 2 weeks. Just leveling out now.
Been lurking here for the last few months so I thought I would use your query to reply since I was questioning the drop myself too. Perhaps this recent article in Globe and Mail might of scared a few investors away:
Why AutoCanada is a (cautious) buy
The annual report makes reference to Canada One Auto Group renting the properties, but some investors might not find the idea of AutoCanada executives owning competing dealerships very appealing.
I have to admit that I am not completely comfortable with this arrangement as well. It's not that I think management is purposely going to self-deal in these transactions, but I know human behavior and bias very well. Independant directors who are nominated by CEOs, cease to become independant and cannot be relied upon to protect the shareholder. If you were setting up deals in this environment, how do you think the deals would be stuctured for all the parties involved?
I have always liked the idea that the CEO was the largest shareholder and so far that has served everyone very well. I think I would prefer to see another dividend instead of putting that money into another arrangement like the GM one. That arrangement may be necessary for growth, but here, I am not sure what is the bigger problem, growth or conflict.
Anyway, I have fully liquidated this position, mainly because I needed money for other opportunities. Good luck to all.
My best guess is it probably consolidates for a good part of this year. Over time, I think there's another leg to the rally if auto sales keep improving.
Autosales were great in June so this is up again. I'm officially over 100% gain on this one!!! I wish I put more into it!
Q2 earnings today
any minute now.....
Very nice - as far as I can tell, 6 dividend increases in the last 6 quarters, now to $0.16. This stock has been hitting all time highs and I am continuing to hold and up +120% YTD.
With net earnings of 33.8 cents, they only paid out at 47% this quarter, although I believe this is normally their best quarter, the payout ratio is fantastic. And still hovering around a P/E of 10-12 with the increase in earnings. If I wasn't at a 5-6% weighting already, I'd buy more for sure.
Last edited by doctrine; 2012-08-09 at 07:37 PM.
Originally Posted by doctrine
I read the financials when it was first posted on this form and have watched and waited and regretted not getting in since. It still seems to be a goods story but i'm not going try and chase it now.
2012-08-09, 10:05 PM
As with everything, there is a price where stocks are a great buy, a good buy, and a poor buy. ACQ is definitely a good buy at this price, but yes it was an outstanding buy when the stock was $5-6 with a P/E of 6-7