Post by
OptsyEagle on Nov 29, 2022 10:11am
Here We Go Again
Another SIB and what do investors do but bid up the stock to the point that no one will want to sell their shares back to the company. It is not just annoying to ACQ but is really getting annoying for me as well.
What makes investors so stupid? Before the SIB they were obviouslyt looking at ACQ and saying, interest rates are going up. That must make it more difficult to sell cars, I think I am going to sell my ACQ shares. We are probably going to have a recession. That must be rough on car dealerships so maybe I will sell my ACQ shares.
Then ACQ says, hey, if you are concerned about the longer term, sell us your shares at a higher price. We see things completely differently. We have been telling you for many quarters now that we have a huge pent up demand for car sales. Many of our quarters are almost completely presold before they even start. We have created a large repair business to offset any economic slow downs. We have a huge number of accretive acquisitions ahead of us and if there is ever a lull in those, we can simply buy back our own shares. We just borrow money at 6% and buy our shares yielding more then 15%, on an earnings yield basis, and like magic our earnings grow. We would be happy to do that all day long. If all that is too complicated for you to understand just sell us your shares and move onto some tech company that you think is easier for you to figure out.
Comment by
cpeczek on Dec 12, 2022 8:46pm
Agreed, I can't rationalize the sell off on this. Interest rates and recession are cooling prices but when I drive past any car dealership in my city, the lot is empty. Cars are selling in advance. The government is upping immigration to a historic level and this country is not built for public transit. The demand for cars will only grow further, not decline.
Comment by
sunshine7 on Dec 13, 2022 4:28pm
Interesting timing. This may appeal to the large investor as a tax loss vehicle without putting downside pressure on this thinly traded stock. Patience until next week IMO if markets behave.
Comment by
OptsyEagle on Dec 14, 2022 11:13am
At this price the arbitraguers should almost guarantee a full take up of the SIB. Probably at $28 but still a bargain for ACQ. I think tomorrow should pretty much lock it all in. As long as we don't rise up past around $27.50 I suspect ACQ should be able to fill their full order. This will be their best acquisition all year...and their largest.