AN Watch
http://online.wsj.com/article/SB121802828775716735.html?mod=googlenews_wsj
Carmax is the largest US used car retailer (just as AN is the largest new car retailer).
Sales are down 17% and no expectations that they will recover.
The working theory is that SUV and large cars are out of style. And that's why AN is suffering. It's all because of oil. So just fix the product mix to emphasize smaller cars, and all will be ok.
Except that car sales slowdown is not because of oil. When a used car dealer that has plenty of small cars is still suffering, the answer is obvious.
Therefore, the reason AN stock bounced off $8 and stays >$10 is unrelated to fundamentals. It's probably a continued playing out of a short cover story complicated by recent announcements of a Gates Foundation stock accumulation.
Carmax is the largest US used car retailer (just as AN is the largest new car retailer).
Sales are down 17% and no expectations that they will recover.
The working theory is that SUV and large cars are out of style. And that's why AN is suffering. It's all because of oil. So just fix the product mix to emphasize smaller cars, and all will be ok.
Except that car sales slowdown is not because of oil. When a used car dealer that has plenty of small cars is still suffering, the answer is obvious.
Therefore, the reason AN stock bounced off $8 and stays >$10 is unrelated to fundamentals. It's probably a continued playing out of a short cover story complicated by recent announcements of a Gates Foundation stock accumulation.
posted by Andrew at
7:50 AM
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