AutoNation, Inc. (NYSE:AN)

MarcMentor (33.42) Submitted: 11/29/2007 3:16:13 PM : Start Price: $16.23 AN Score: +129.37

A true "Rule #1" stock selling at incredibly low multiples and book value. Following the example of Eddie Lampert and Warren Buffet.

harley96st (< 20) Submitted: 11/20/2007 4:40:34 PM : Start Price: $15.75 AN Score: -133.56

an

milehighfooling (74.89) Submitted: 11/16/2007 1:24:33 PM : Start Price: $16.63 AN Score: -123.06

Numbers showing declines. Don't see the market (or perception of the market by the masses) changing its current direction. Volitility and uncertainty will likely result in larger purchases being put off for short term. Not normally a short term player, this seems a no brainer to try out on CAPS though.

USAF64 (53.71) Submitted: 11/9/2007 4:51:11 PM : Start Price: $16.60 AN Score: +123.18

to increase dividend, Get it before it's announced !

BadManNo1 (68.87) Submitted: 7/26/2007 1:50:47 PM : Start Price: $19.92 AN Score: -88.04

Net income significantly down, 36% change from 05 based on 06 figures. Mike Jackson needs some help!!

NetscribeRetail (95.38) Submitted: 5/18/2007 7:03:38 AM : Start Price: $21.32 AN Score: -78.25

The U.S. economy is struggling with downturn in housing market. The U.S. mortgage default rate hit an all-time high in the first quarter of 2007 and has negatively impacted purchasing power of people. The repercussion of this decline in housing market is seen in the once lucrative automotive retailer industry. The industry has witnessed a 5% decline in new vehicle retail sales based on CNW Research data. Even the largest U.S. car dealership chain, AutoNation, wasn’t spared of this fiasco, which began the year with poor results.

The company derives about half of its revenue from Florida and California, where the economy is already overheated with prolonged lower interest rates leading to the development of real estate market. Of late, the surge in the interest rates has reversed the fortunes of the real estate market. This is clearly reflected in AutoNation’s first quarter same store sales, which declined by 8% as compared to 5% decline in the industry. However, the company managed to improve its average revenue per unit retailed by shifting its brand mix from domestic brands to volume import and premium luxury brands.

The company is making conscious effort to reduce driving costs, improve capabilities and optimizing portfolio. The company has already reduced its inventory level by 15% to 61,300 units, driven by a sizable reduction in domestic units. However, the weakness in California and Florida will continue as their housing markets struggle, which implies that AutoNation will continue to struggle in this challenging market for new vehicle sales.