Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

AutoCanada Inc T.ACQ

Alternate Symbol(s):  AOCIF

AutoCanada Inc. is a Canada-based multi-location franchised automobile dealership company. It offers a diversified range of automotive products and services, including new vehicles, used vehicles, vehicle leasing, vehicle parts, vehicle maintenance and collision repair services. Its segments include Canadian Operations and U.S. Operations. It operates over 83 franchised dealerships, comprised of 28 brands, in eight provinces in Canada as well as a group in Illinois, United States. It sells Acura, Alfa Romeo, Audi, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge, FIAT, Ford, GMC, Honda, Hyundai, Infiniti, Jeep, Kia, Lincoln, Mazda, Mercedes-Benz, MINI, Nissan, Porsche, Ram, Subaru, Toyota, Volkswagen, and Volvo branded vehicles. Its Canadian Operations segment operates three used vehicle dealerships and one used vehicle auction business supporting the Used Digital Division, 13 RightRide division locations, and 11 stand-alone collision centers within its group of 27 collision centers.


TSX:ACQ - Post by User

Bullboard Posts
Comment by HamRoveJron Nov 08, 2015 5:59pm
106 Views
Post# 24271751

RE:Rover

RE:Rover
LETS JUST say as an example ACQ pays out 100% EPS right now and it doesn't decrease (say it was $2) Say this has a beta of 1.4 which you can find be doing a regression or using the cov of acq and market returns over market returns variance.  and continuing simplicity assume the annual Risk Free rate is 2% being extremely optimistic!.  Now usuing CAPM to try to determine a discount rate for what this is paying us...we have (assuming the market risk premium is 8% which it is slightly under but we are being optimistic here.)  We use r=2%+1.4(8%)=13.2% and use this to find the capitalized value of our div. which is 100% payout of $2...(which for 2015 it is fairly lower!) So we have P=$2/.132=$15.15...so as a dividend play this is nearly double that and half this stocks value is derived as the present value of growth opportunities!!!  When growth has/is most likely going to stall for the forseeable future unless they are silly and continue expanded while they should be cautious.  Anyone smart would step back and wait till like next summer before dumping more money in this since there are WAY better dividend stocks out there who's growth is not under question...or whose business is focused in a commodity driven market.

https://www.bloomberg.com/news/articles/2015-11-08/global-gdp-worse-than-official-forecasts-show-maersk-ceo-says
--oil's going down through December ROVER
Bullboard Posts