Ccord airbag deployed
AutoCanada* (ACQ : TSX : $74.54), Net Change: -0.34, % Change: -0.45%, Volume: 192,241 KEYWORD: OVERDONE. A Bay Street Analyst came to the defense of AutoCanada on Tuesday saying the recent selloff in shares was overdone and that the "recent pullback provides opportunity." On June 25, AutoCanada announced a bought deal financing at $78.00 per share, which included a treasury offering of 2,565,000 common shares for gross proceeds of $200 million, and a secondary offering of 2,598,500 common shares for additional proceeds of $203 million. Post offering, AutoCanada shares dropped to as low as $71.23 per common share (off 8.7% from issue price). Treasury offering proceeds will be used to reduce indebtness under the company's revolving credit facility. Recall, on June 5, AutoCanada increased its acquisition guidance to 8-10 dealer acquisitions over the next 12 months, as opposed to previous guidance of 8-10 acquisitions over the next 24 months. The company recently completed the acquisition of the Hyatt Automotive Group and its six Calgarybased dealerships. Given the company’s recent history of accelerating its acquisition guidance, Canaccord Genuity Consumer & Retail Analyst Derek Dley believes the guidance for 8-10 new dealerships over the next 12 months is likely conservative. AutoCanada is expected report Q2/14 earnings results in early August.