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AutoCanada Inc T.ACQ

Alternate Symbol(s):  AOCIF

AutoCanada Inc. is a Canada-based multi-location franchised automobile dealership company. The Company offers a diversified range of automotive products and services, including new vehicles, used vehicles, vehicle leasing, vehicle parts, vehicle maintenance and collision repair services, extended service contracts, vehicle protection products, after-market products and auction services. The Company also arranges financing and insurance for vehicles purchased by its customers through third-party finance and insurance sources. Its segments include Canadian Operations and U.S. Operations. It operates 83 franchised dealerships, comprising of 28 brands, in eight provinces in Canada as well as a group in Illinois, United States of America. It sells Chrysler, Dodge, Jeep, Ram, FIAT, Alfa Romeo, Chevrolet, GMC, Buick, Cadillac, Ford, Infiniti, Nissan, Hyundai, Subaru, Audi, Volkswagen, Kia, Mazda, Mercedes-Benz, BMW, MINI, Volvo, Toyota, Lincoln, Acura, and Honda brands.


TSX:ACQ - Post by User

Post by OptsyEagleon Dec 21, 2022 9:18am
197 Views
Post# 35184261

Auto REIT buys 6 Dealership Properties

Auto REIT buys 6 Dealership Properties Sort of related to ACQ.   Today, Automotive REIT announced that they just bought the underlying properies of 6 dealerships in Quebec for $98.5 million, or approximately $16.4 million for each dealership.  These are not ACQ dealerships but still very interesting as you will see.

https://finance.yahoo.com/news/automotive-properties-reit-announces-agreements-130000317.html

You see, currently ACQ owns 63 Canadian dealerships and 18 US dealerships.  That's 81 dealerships.  I know they sold a few to Auto Reit as well but lets just say they still own the land of 70 of those dealerships.   I know they haven't sold many.  This math is very rough but $16.4M x 70 is $1.15B.   If I subtract their long term debt (ignore floor financing since that is covered by the cars on their lots) of $460M we are left with $690 million of net land value after they pay off all their debts.   With only 23.5 million shares outstanding it tells me that an ACQ share is worth $29.36 in land value alone AND if you buy it today, at less then $23, they will throw in the auto sales business, the repair business the financing business and all those body shops they have been buying lately...for free.

If you ever wanted to know why ACQ is trying to buy as many of their own shares back as they can these days, this would be 1 of about 5 really reasons right there.
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