Topic: How To Invest

Pat: May I have your expert advice on AutoCanada? Thank you.

Article Excerpt

AutoCanada Inc., $74.80, symbol ACQ on Toronto (Shares outstanding: 21.9 million; Market cap: $1.8 billion; www.autocan.ca), has 42 franchised car dealerships in eight provinces. It sells numerous brands, including Chrysler, Dodge, Jeep, Ram, Fiat, Chevrolet, GMC, Buick, Cadillac, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi, Audi, Volkswagen, BMW and Mini. However, Chrysler vehicles (including Dodge, Jeep, Ram and Fiat) supply nearly 74% of the company’s revenue. In 2013, AutoCanada’s dealerships sold roughly 36,000 vehicles and processed about 364,000 repair and maintenance orders in their 381 service bays. The company aims to keep growing rapidly by buying more dealerships. To that end, it just paid Hyatt Automotive Group an undisclosed amount for six dealerships and the exclusive right to build and operate another, under the Nissan banner, on a designated property in southeast Calgary. The Hyatt dealerships are known by their trade names: Hyatt Mitsubishi, Fish Creek Nissan, Calgary Hyundai, Northland Volkswagen, Hyatt Infiniti and Crowfoot Hyundai. In 2013, they collectively sold 3,991 new vehicles and 2,317 used…