Itching to dump amazing stock

taojaxx said:
No. What I'm saying is deciding to keep the stock is no different than buying it if I had none.
I'll only buy more if and when it gets some momentum.
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I think I know what you are saying. But let me see if this is it:

If you had none right now you would buy some right now?

If that is the case then yes hold.

But time is money and nowadays of course it earns a much better rate of interest, so there is that to take into consideration.
 
That's correct. Indeed I would. I would advise a family member to take a good look at it and decide for themselves : 44+% 5Y average EPS growth, 20% 5Y annual CAGR and a PE of 6. Nothing to sneeze at so I decided against selling it. Patience needed.
Can't recall whether it was Einstein, Mark Twain, WC Fields or Buffett but someone said "the stock market is a mechanism to transfer money from the impatients to the patients".
Well, ABG is the tool.
 
taojaxx said:
That's correct. Indeed I would. I would advise a family member to take a good look at it and decide for themselves : 44+% 5Y average EPS growth, 20% 5Y annual CAGR and a PE of 6. Nothing to sneeze at so I decided against selling it. Patience needed.
Can't recall whether it was Einstein, Mark Twain, WC Fields or Buffett but someone said "the stock market is a mechanism to transfer money from the impatients to the patients".
Well, ABG is the tool.
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So time waiting, with your money doing nothing .... is secondary?

Or as you have posted previously, your money (stock's current value) is actually lower currently. Do you use stops at all?

I'm missing something here. But that's ok. Carry on.
 
SunTrader said:
So time waiting, with your money doing nothing .... is secondary?

Or as you have posted previously, your money (stock's current value) is actually lower currently. Do you use stops at all?

I'm missing something here. But that's ok. Carry on.
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He said he bought it with borrowed money (paid margin interests) and exit if down > 7%.

It would not be in my long term hold because on top of been very cyclical, the US auto industry and retail business is in the middle of a sea change. I worry about the Tesla retail model on top of all the other economic issues.
 
ironchef said:
He said he bought it with borrowed money (paid margin interests) and exit if down > 7%.

It would not be in my long term hold because on top of been very cyclical, the US auto industry and retail business is in the middle of a sea change. I worry about the Tesla retail model on top of all the other economic issues.
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Ok I missed that.
 
taojaxx said:
Stock returned 20% CAGR over the last 5 years, has low correlation with the rest of my holdings, trades at an incredible 6 PE: checks all the boxes except: been going nowhere since I bought it a few weeks back.
I'd hate selling a 6 PE stock with stellar track record but it's costing me margin interest day after day after day with ZERO price appreciation: keeps trading around my cost. Mostly couple of bucks below (for a $225 stock). Irritates the heck out of me.
Views y'all? Keep it? Junk it?
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You can sell the June $220's and get ~$32 to hold that long.

That compounded average revenue growth, I think that's thru acquisitions. They just made another big one too. It's not finalized yet.

It looks solid. I looked it over this morning. Hope they're not biting off more than they can chew with this latest acquisition, because it's a big one.
 
vanzandt said:
You can sell the June $220's and get ~$32 to hold that long.

That compounded average revenue growth, I think that's thru acquisitions. They just made another big one too. It's not finalized yet.

It looks solid. I looked it over this morning. Hope they're not biting off more than they can chew with this latest acquisition, because it's a big one.
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Definitely solid. I'm familiar with their last acquisition (Koons), bought my truck there. Thanks for the suggestion but I don't do covered calls, I'd hate seeing it called away as it starts rising. If anything I'd rather sell puts and roll them over and over again till I get assigned.
 
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taojaxx said:
If anything I'd rather sell puts and roll them over and over again till I get assigned.
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That's a great way to get in, as long as you keep tabs on the story.

When I read your post, I thought for sure it was an energy stock with a low PE like that and those great numbers. I looked at my energy watchlist and saw Pioneer around $225. PXD. That's why I guessed it. It's up $7 today too lol.

That Koons deal isn't quite done yet, that's the big one I was referring to. I like that they are financing it using their existing liquidity and credit vs issuing more stock.

I saw this, and that's why I figured that revenue growth wasn't organic. It looks like they bought someone that became revenue accretive in 2022. But it might have just been higher prices.

upload_2023-9-27_14-17-32.jpeg
 
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vanzandt said:
That's a great way to get in, as long as you keep tabs on the story.

When I read your post, I thought for sure it was an energy stock with a low PE like that and those great numbers. I looked at my energy watchlist and saw Pioneer around $225. PXD. That's why I guessed it. It's up $7 today too lol.

That Koons deal isn't quite done yet, that's the big one I was referring to. I like that they are financing it using their existing liquidity and credit vs issuing more stock.

I saw this, and that's why I figured that revenue growth wasn't organic. It looks like they bought someone that became revenue accretive in 2022. But it might have just been higher prices.

View attachment 323902
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That's indeed their MO: buy dealership, restructure and bring scale to cut costs. Dealership industry is very fragmented, most of it small regional players. ABG's business is to scale up, absorb and increase profitability, rinse and repeat. Another player doing the exact same thing is LAD, worth a look too. I picked ABG as it is more shareholder friendly: less CapEx, more buybacks.
Nice article describing ABG:
https://seekingalpha.com/article/4635905-asbury-automotive-driving-superior-returns-through-m-and-a
 
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