AN, GPI, ABG, SAH

Consumer, Industrial/Transportation


Highlights

The auto dealers are among the primary groups of companies that stand to benefit from the growth in SAAR since the financial crisis of 2007-2008. The presenter believes we are in the top of the second inning of the trade, as the wave of aging cars is rolling through and service revenues could potentially “explode.” Service revenues generally represent a larger portion of auto dealers’ gross profits than people expect, said the presenter. In 2013 he began building a position in a basket of auto dealers due to the relatively small market capitalizations of companies like AutoNation Inc. (AN), Group 1 Automotive Inc. (GPI), Asbury Automotive Group, Inc. (ABG), and Sonic Automotive (SAH), and he expects to hold the position throughout 2014 and into 2015.

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Idea Discussion

Commentor 1 - 2 weeks ago

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