Asbury Automotive Group, Inc. (ABG)

MarionContrarian (64.58) Submitted: 4/10/08 1:55 PM : Start Price: $14.06 ABG Score: -28.25

Like a number of companies in the automotive sector, ABG has been punished severerly, losing half its value since its peak of $30 at the endof April last year. Since putting in a bottom in late January, the stock has recoved somewhat and has been forming a base in the $13.50-$15.50 range since February, supported by an annualized dividend in excess of 6% at current prices (quoted @ $14.34 as of 4/10/08).

As the economy comes out of the current recession, the automotive sector should be one area that improves. ABG, in particular, should benefit with it's focus on upscale autos should suffer less, and improve sooner, than econo-cars. ABG could recover half of prior losses, breaking out to $20 a share over the next six months to a year.

I recently established a small position in the $14 area, and have added to it today.@ $14.75

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