Topic: How To Invest

Pat: I am a new member and I have a question. What is your current view of AutoCanada and Easyhome? Thanks.

Article Excerpt

AutoCanada Inc., $38.29, symbol ACQ on Toronto (Shares outstanding: 24.5 million; Market cap: $886.8 million; www.autocan.ca), has 46 franchised car dealerships in eight provinces. The company sells numerous brands, including Chrysler, Dodge, Jeep, Ram, Fiat, Chevrolet, GMC, Buick, Cadillac, Nissan, Hyundai, Subaru, Audi, Volkswagen and BMW. However, Chrysler vehicles (including Dodge, Jeep, Ram and Fiat) supply around 70% of its revenue. In 2013, AutoCanada’s dealerships sold roughly 36,000 vehicles and processed about 364,000 repair and maintenance orders in their 381 service bays. The company continues to fuel its growth by acquiring more dealerships. In June 2014, it paid $91.4 million for the Hyatt Automotive Group, which has six dealerships and the exclusive right to build and operate another, under the Nissan banner, on a property in southeast Calgary. The Hyatt dealerships are known by their trade names: Hyatt Mitsubishi, Fish Creek Nissan, Calgary Hyundai, Northland Volkswagen, Hyatt Infiniti and Crowfoot Hyundai. In 2013, they collectively sold 3,991 new vehicles and 2,317 used ones. Other recent purchases…