In the past 30 days, five analysts have raised their earnings estimates for this Canadian auto dealer.
AutoCanada Inc. (ACQ.TO)
From Internet Wealth Builder
AutoCanada (ACQ.TO) owns 54 automobile dealerships. This is the largest publicly traded group of auto dealerships in Canada. AutoCanada’s strategy has been and continues to be to grow by acquisition, to further diversify geographically, and to benefit from economies of scale in this highly fragmented industry.
AutoCanada announced on Thursday morning that it is buying a group of eight dealers in and around Chicago. This will add to its current count of 54 dealers and adds to its diversification both in terms of geography and in brands.
This is the company’s first foray into the U.S. Two of AutoCanada’s executives have strong U.S. auto industry experience. This transaction is another indication that AutoCanada intends to continue with its growth by acquisition plans.
At some point, this could lead to more interest in the stock, but given a current lack of enthusiasm for the auto industry, I don’t think we will see AutoCanda’s stock really take off.
My advice: Buy for long-term growth and the potential for a sharper short-term recovery in the share price.
Shawn Allen in Gordon Pape’s Internet Wealth Builder, www.buildingwealth.ca, 1-888-287-8229, March 26, 2018