She is short the stock. She doesn’t like it. It has been problematic for many years. The acquisition in the US didn’t make sense. Two months later they wrote a significant portion off. 

He tends to short companies that show negative trends and he plans to stay short on this even though it has already dropped so much. It has had a few disastrous quarters in a row. There was chatter a year ago about them spinning out some real estate assets but apparently that failed. The balance sheet is now getting tight, with covenants that limit them to 4x debt to EBITDA. He thinks they’ll push up against that this quarter. He’ll stay short until they start improving their margins.

They exited their position when they announced an acquisition in the US a couple of months ago – and they were relieved they did so. The company reported management changes last night and took a write down on the Chicago dealership asset of $45 million – a third of the asset value. Same store sales were down again. It is a good business, but the value is not worth investing in at this point. He thinks the earnings per share will continue to decline.

Has had a roller-coaster ride in the last year. It was one of the go-go stocks buying private dealerships, but they hit a downturn and then now new Management took over. He thinks new Management is eventually going to improve execution. There is concern also in terms of peak sales in automobiles. They continue to expand and diversify from Alberta. Depending on your view of auto sales you should look at the stock. 

He sold out a few months ago.  The recent selloff has prompted some shareholder resentment and a call for strategic alternatives.   The latest quarterly earnings were disappointing.  There was discussion of a US acquisition, but he feels it may be a lower margin one.  He does not know how they will change the momentum. 

He sold it at the start of 2018. The stock has taken a dive. It had a bad quarter, but it could move back to $18-20. It's currently at cheap valuations. A problem is that they can't buy enough dealerships to grow their company, at least not in Canada, so they must look to the U.S. Also, rising interest rates and the late auto cycle are headwinds.

He is negative on consumer discretionary in Canada, including automotive. They are diversifying away from being Chrysler driven. He sees the diversity as a positive and it is on his looking-to-buy list. This is the kind of think he might buy at the end of the tax-loss selling season, near the end of the year just because it is down so much.