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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

Comment by OptsyEagleon Dec 24, 2022 10:26am
141 Views
Post# 35191016

RE:RE:CIBC

RE:RE:CIBCI suspect they are not looking at what the situation will be in 2027, so you might as well ignore it all.

Most of us should know by now that this year is going to suck, from a stock market perspective.  If we get a recession, and we probably will, it will no doubt have a dampening effect on stocks and auto sales.  Let's face it.  The BOC and the US Fed are going to keep raising rates until a lot of people stop buying things, and I imagine cars will be one of those things that people will need to stop buying in order to get this inflation problem under control.

However, not buying cars is similar to not buying food but with a longer absense allowed.  While a person puts off buying a car, the car they have degrades.  Eventually that person will need to buy a car again.  It is a consumable and a necessity for most people that own one. 

That is the downside view and the upside view is that we don't get a recession and ACQ is currently 50% undervalued, or more.  Whatever the future holds it will not change ACQs dominant position in this industry, nor the value of its underlying land holdings, etc.  All these down cycles do is allow ACQ to purchase more dealers and body shops at lower and lower prices so when the guaranteed upswing happens they will make more money then they could have if this down cycle did not exist.

In the mean time, waiting to buy a stock at lower price, when that is currently trading below its liquidation value is a very risky thing to do.   Just buy the darn stock, put it away and take a 5 year nap and wake up to your good fortune.  If it goes lower in the mean time, buy some more of it if you can.  That is my advice. 
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