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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

Post by OptsyEagleon Jul 14, 2023 11:35am
256 Views
Post# 35541290

RE:RE:RE:ACQ has $255 of Revenue per share

RE:RE:RE:ACQ has $255 of Revenue per shareCan't comment too much on that opinion except that GM initially would not allow public ownership of its dealerships in Canada but eventually agreed to it, since its competitors were doing it and they needed dealerships.  I imagine they preferred the older arrangement where the dealers were mom and pop type operations with less clout to demand better terms.

As for a white knight.  That is certainly not the right term.  ACQ would be better off to stand alone, since its valuation is considerably below fair value.  My comment referred to the point that it was surprising that a larger publilc operation, like they have in the US, would not want to seize that low valuation and garner an easier entry into the Canadian market.  Perhaps there are other issues, I can't say.

Whether any of that plays out or not is not important to an investor buying ACQ today.   This company can grow for decades consolidating dealerships, with just about any dealer or repair shop acquisition being immediately accretive.   I doubt the CEO bought $1.5 million worth of ACQ stock last month because he sees their future as dire.
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