Auto Dealers: AN, GPI, ABG, SAH

Consumer, Industrial/Transportation


Publicly traded companies mentioned herein: AutoNation Inc. (AN), Group 1 Automotive Inc. (GPI), Asbury Automotive Group, Inc. (ABG), Sonic Automotive (SAH), Penske Automotive Group, Inc. (PAG), Lithia Motors Inc. (LAD), General Motors Company (GM)

Highlights

Of the six publicly traded auto dealers, the presenter is long a basket of four of them. He likes the setup and risk/ reward for AutoNation (AN), Group 1 (GPI), Asbury (ABG), and Sonic (SAH), and shied away from Penske due to “how expensive shares are/were” and Lithia (due to its regional exposure and brands). He sees a big inflection coming for the most profitable part of the auto dealers’ business: parts and service. With new car sales (SAAR) having recovered following the financial crisis and a wave of leases rolling over (most leases are three years in duration), the auto dealers are extremely well-positioned to benefit over the next 3-5 years.

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Idea Discussion

Commentor 1 - 2 weeks ago

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