Thoughts on ACQ The Retail Car Business has been through the good times and the bad. This economic climate will prove troublesome for Dealers. The single point Dealers that own their real estate will do ok as their holding Companies often are the landlords and so even if the business breaks even the Dealer still collects his or her rent. Now for the multi point Dealers, its not that easy. Auto Canada is about to taste the leverage of 50 Dealerships struggling to breakeven. The problem here is the debt and the cashflow which is directly related to the inventories both new and used. Keep a very close eye on the used inventories, days in stock and donot forget that the profits stated in the new vehicle departments are virtual in the sense that until the used vehicle trade is sold the true picture of stated profits is unknown. I would be very careful here as IMO the dividend is at risk and should that happen the SP will suffer very quickly!