TSE:ACQ
13.64
0.48
(3.40%)
AutoCanada is one of Canada's largest multi-location and first publicly traded franchise automobile dealership group.
More at Wikipedia
Analysis and Opinions about ACQ-T
Signal
Opinion
Expert
HOLD
HOLD
January 6, 2020
He has recommended the stock. It has been a poor performer over the last few years. They released more positive earnings recently, rocketed to $14 and then pulled back to $12. Their acquisition in the US went quite poorly and the management team was discarded a year ago. It is a show me story for the market. Quantitative investors are looking at it now and boosting it. He may be looking to exit in the future but there is no reason to well at these levels. The dividend is well protected. (Analysts’ price target is $14.00)
Show full opinionHide full opinion
He has recommended the stock. It has been a poor performer over the last few years. They released more positive earnings recently, rocketed to $14 and then pulled back to $12. Their acquisition in the US went quite poorly and the management team was discarded a year ago. It is a show me story for the market. Quantitative investors are looking at it now and boosting it. He may be looking to exit in the future but there is no reason to well at these levels. The dividend is well protected. (Analysts’ price target is $14.00)
PARTIAL SELL
PARTIAL SELL
November 19, 2019
It peaked in 2014 and has fallen way off. Doesn't see a catalyst to move it higher and, no, he doesn't buy a stock on the way down. He would lighten up this position.
Show full opinionHide full opinionIt peaked in 2014 and has fallen way off. Doesn't see a catalyst to move it higher and, no, he doesn't buy a stock on the way down. He would lighten up this position.
BUY WEAKNESS
BUY WEAKNESS
November 18, 2019
Last year was a disaster for them. A US acquisition turned out not good and management was fired. This stock had a big run-up last week after results were released. Management is turning this company around. It is still undervalued. Average down at $10-$10.50 range. (Analysts’ price target is $23.63)
Show full opinionHide full opinionLast year was a disaster for them. A US acquisition turned out not good and management was fired. This stock had a big run-up last week after results were released. Management is turning this company around. It is still undervalued. Average down at $10-$10.50 range. (Analysts’ price target is $23.63)
DON'T BUY
DON'T BUY
July 26, 2019
He shorted this. It's fallen too far for him to short again. A beaten-up stock. They have negative ROE and EBITDA, so they'll have trouble covering their huge debt. The stock may be worthless if they re-structure. Maybe they climb out of this hole, but they could recover.
Show full opinionHide full opinionHe shorted this. It's fallen too far for him to short again. A beaten-up stock. They have negative ROE and EBITDA, so they'll have trouble covering their huge debt. The stock may be worthless if they re-structure. Maybe they climb out of this hole, but they could recover.
DON'T BUY
DON'T BUY
June 10, 2019
The economy in Edmonton is not great. Car selling is competitive. ACQ-T has a lot of management turnover. He would not be into it.
Show full opinionHide full opinionThe economy in Edmonton is not great. Car selling is competitive. ACQ-T has a lot of management turnover. He would not be into it.
PAST TOP PICK
PAST TOP PICK
February 27, 2019
(A Top Pick Mar 12/18, Down 36%) Pretty much anything that could go wrong did go wrong. They overpaid for an acquisition that caused a lot of problems. He bought more on a pullback and has helped reduce the pain. He thinks the future still remains bright and will continue to hold on.
Show full opinionHide full opinion(A Top Pick Mar 12/18, Down 36%) Pretty much anything that could go wrong did go wrong. They overpaid for an acquisition that caused a lot of problems. He bought more on a pullback and has helped reduce the pain. He thinks the future still remains bright and will continue to hold on.
DON'T BUY
DON'T BUY
February 4, 2019
For a 1-2 year hold? No. Car sales depend on consumer confidence, interest rates and employment. ACQ bought too many dealerships, and are now selling some of them or the land. He avoids anything exposed to the Canadian consumer because we could enter a recession.
Show full opinionHide full opinionFor a 1-2 year hold? No. Car sales depend on consumer confidence, interest rates and employment. ACQ bought too many dealerships, and are now selling some of them or the land. He avoids anything exposed to the Canadian consumer because we could enter a recession.
SHORT
SHORT
September 27, 2018
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.
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.
PAST TOP PICK
PAST TOP PICK
August 30, 2018
(A Top Pick June 22/17 - Down 29%) Sold it a while ago. They liked the model. They made a bad deal that put him in an alert and they also bought something in the US that didn’t make sense.
(A Top Pick June 22/17 - Down 29%) Sold it a while ago. They liked the model. They made a bad deal that put him in an alert and they also bought something in the US that didn’t make sense.
DON'T BUY
DON'T BUY
August 28, 2018
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.
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.
DON'T BUY
DON'T BUY
August 15, 2018
He has looked closely at this recently, but feels the balance sheet is scary. With a debt-equity of 4:1, it is too risky in the event of any recession. They make 90% on car servicing and feels a future recession could really impact this company.
He has looked closely at this recently, but feels the balance sheet is scary. With a debt-equity of 4:1, it is too risky in the event of any recession. They make 90% on car servicing and feels a future recession could really impact this company.
DON'T BUY
DON'T BUY
August 10, 2018
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.
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.
WATCH
WATCH
July 25, 2018
This started several years ago as a collection of Chrysler dealerships. They made an acquisition in Chicago that has added debt and needs to be proven as being accretive. He would watch to see how the new asset goes before buying.
This started several years ago as a collection of Chrysler dealerships. They made an acquisition in Chicago that has added debt and needs to be proven as being accretive. He would watch to see how the new asset goes before buying.
COMMENT
COMMENT
July 12, 2018
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.
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.
DON'T BUY
DON'T BUY
June 20, 2018
He has watched them for quite a while. They are a consolidator in the car dealership space. He doesn’t like the 80% decline in share price – great quality stocks don’t do this. If the stock broke below $17 on heavy volume, he would run for the exit. They are relatively highly leveraged and could face substantial issues during the next recession. Yield 2%.
He has watched them for quite a while. They are a consolidator in the car dealership space. He doesn’t like the 80% decline in share price – great quality stocks don’t do this. If the stock broke below $17 on heavy volume, he would run for the exit. They are relatively highly leveraged and could face substantial issues during the next recession. Yield 2%.
