RE:RE:Ratbhatt, you want BloombergSen to email you before they buyratbhatt wrote:
Sorry perhaps I replied to a wrong thread. What I am curious to know is why is price just falling? There is no bad news except for the oil glut which should have actually boosted their sales. But this share just keeps falling!!
Why would an oil glut boost sales? According to Auto Canada's 2015 investor's presentation, about 45% of their revenue (from 2013 numbers) come from Alberta. The is a province whose economy is driven by oil.
That said, I really like Auto Canada. I've been looking for an entry position on it for awhile. I just don't believe now's the time. The price on oil is still volatile and likely downward.
I hoped that the Bank of Canada's cut to overnight rates would help financing, however, banks haven't yet cut their prime rate. Even then, it's not enough to drive Albertans to finance a new vehicle in this environment.