11:21:50 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



AutoCanada Inc
Symbol ACQ
Shares Issued 27,459,683
Close 2018-08-15 C$ 11.66
Market Cap C$ 320,179,904
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Globe says AutoCanada may soon stop spinning its wheels

2018-08-16 08:10 ET - In the News

The Globe and Mail reports in its Thursday edition that if AutoCanada's 27-per-cent decline on Friday appeared shocking, spare a thought for investors who bought at $90 four years ago. The Globe's David Berman writes, however, that fortunes can change in a blink. Wednesday's 16-per-cent rally, when the overall market was deep in the red, provided an early indication of what can happen when the market recognizes a good deal. AutoCanada is an Edmonton-based car retailer that operates through 63 dealerships across Canada and in Illinois, following its recent $110-million acquisition of Grossinger Auto Group. In its second-quarter results, AutoCanada reported a loss of $41.4-million after announcing a $44-million writedown associated with the Grossinger acquisition -- a nasty setback given the deal was only announced in March. Also, the company's debt levels are high, and the number of new vehicles sold declined 6.9 per cent, year-over-year, while operating expenses jumped 14 per cent. On the bright side, new and effective leadership will shake things up, and trade tensions could blow over. Mr. Berman figures that at their current, deeply depressed level, AutoCanada shares are worth a closer look.

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