AutoNation, Inc. (NYSE:AN)

Hated by analysts (Investor's Place).

What can you get of a company that combine lots of debts (Debt/Common Eq = 147%) and low cash (quick ratio of 0,22)? In this market moment i guess the answer is BLOOD ON THE STREETS or BLOOD ON THE PROFITS!!!!

"Big Box" retail companies are coming to dominate the retail consumer space. A similar example is starting to play-out in the auto market. Used cars = CarMax. Perhaps new cars will be dominated by mega-dealers such as AutoNation(AN).

This stock, wich just reported a great quarter is likely no exception. AN is a BUY!!!

Kahuna, CFA
Kailua-Kona
le 3 fe'vier 2011

AutoNation has rebounded nicely in Q1 of 2010 and had excellent cash flow earnings. I see this trend continuing for this year as many of their business units will improve as economic conditions post uptrends. I rate AutoNation a buy.

new position as of recent 13F

2,385,465 owned
- Q409 13F - Soros Fund Management LLC

Fixing to get regulated

a good car dealership company

Razor thin earnings even in good time and declining revenues

In this massive downturn on automotive related things, especially dealers, this dealer congolmerate will shine. The strong survive, and this is a strong company.

Short-term bearish candles pattern has built up, though long term fundamentals appear to be solid.

GOOD CARS DEALARSHIP

Smart management leads economy by several months. It's was already lowering its exposure to american cars as their market share was already dwindling in the early 2006s. This is a value-play, not a growth cap - its credit facility doesn't allow for major acquisitions (which is a good thing btw).

need for new cars

Creating a portfolio of stocks with significant numbers of insider buys.

Not built for a down economy - will have trouble surviving if GM/Ford/Chrysler cut a lot of their dealerships

I am calling an underform position on this stock and KMX today. Although, I will be purchasing put options on both by 12/19/08 (when KMX reports earnings). I expect a horrible report. Both of these stocks are in debt, diminishing margins, less revenue, and more depreciation. Look at the numbers. No loans available, and the people that are defaulting on loans most likely are the ones with loans on used cars. The automaker deal just fell through, but I believe it will work out in the end. While dealers continue to offer great deals for new cars, used cars 1-6 years old will not be able to be sold for a profit.

People will choose to buy a new car, whether brand new or just "new to them," in the near future. The catalyst for this purchase will be high gas prices.

The US economy is hurting and what do we do when money is tight. We don't buy a brand new car. We opt to buy a used car and I believe auto nation will be a part in that play for people the need to get to work everyday. It sucks when you live in the suburbs, but work in the city.