ABG(nyse) - Asbury Automotive Group Inc.Mkt Cap: 713.61M
Float: 13.43M
Profile: Asbury Automotive Group, Inc., headquartered in New York City, is one of the largest automobile retailers in the U.S., with 2004 revenues of approximately $5.3 billion. Built through a combination of organic growth and a series of strategic acquisitions, Asbury now operates through nine geographically concentrated, individually branded "platforms." These platforms currently operate 94 retail auto stores, encompassing 129 franchises for the sale and servicing of 33 different brands of American, European and Asian automobiles. Asbury believes that its product mix contains a higher proportion of the more desirable luxury and mid-line import brands than most public automotive retailers. The Company offers customers an extensive range of automotive products and services, including new and used vehicle sales and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts.
website: http://www.asburyauto.com/nerve/home.html
FundamentalsABG seems to be a very fundamentally sound stock:
(http://www.3stocksonfire.org/stockcharts/ABG%2006-02-2006%20004.JPG)
Forward PE is around 11 and this is a low valuation in almost any industry. The current P/S ratio is a brutally low 0.13.. the auto-dealership industry average is .22.. so it should give us some room to work with.. especially considering that that the company is seeing solid growth according to Q1 2006 earnings:
QuoteAsbury Automotive Group Reports First Quarter Financial Results
Thursday April 27, 7:30 am ET
Income from Continuing Operations Increases 19%, Excluding 2006 Stock-Based Compensation and 2005 Restructuring Costs
Adjusted SG&A as a Percent of Gross Profit Decreases 180 Basis Points
http://biz.yahoo.com/prnews/060427/nyth006.html?.v=44
A summary of our financial results for the first quarter of 2006, as compared to the prior year period, included:
- Total revenue for the quarter was approximately $1.4 billion, up 8
percent. Total gross profit was $211.5 million, up 9 percent.
- Same-store retail revenue and gross profit (excluding fleet and
wholesale businesses) were up 6 percent and 7 percent, respectively.
- New vehicle retail revenue increased 7 percent (4 percent same-store),
and unit sales increased 5 percent (2 percent same-store). New vehicle
retail gross profit rose 9 percent (7 percent same-store).
- Used vehicle retail revenue increased 13 percent (9 percent same-store),
and unit sales increased 7 percent (3 percent same-store). Used vehicle
retail gross profit increased 18 percent (14 percent same-store).
- Parts, service and collision repair (fixed operations) revenue increased
12 percent (10 percent same-store), and gross profit increased 10
percent (8 percent same-store).
- Net finance and insurance (F&I) revenue was flat. F&I per vehicle
retailed (PVR) decreased 5 percent to $890, while dealership-generated
F&I PVR was down 4 percent to $865.
- Selling, general and administrative (SG&A) expenses as a percentage of
gross profit was 78.3 percent for the quarter, compared with 81.4
percent a year ago. Excluding stock-based compensation in the current
year and expenses related to the regional reorganization a year ago SG&A
expenses as a percentage of gross profit was 77.7 percent, compared to
79.5 percent for the prior year period.
Chartslong-term(http://www.3stocksonfire.org/stockcharts/ABG%2006-02-2006%20003.JPG)
medium-term(http://www.3stocksonfire.org/stockcharts/ABG%2006-02-2006%20002.JPG)
short-term(http://www.3stocksonfire.org/stockcharts/ABG%2006-02-2006%20001.JPG)
Trade PlanABG is looking to attack its all time high around 22. Once the stock is through this area it is all up to valuation as no overhead resistance would be in the way. With a powerful Q1 in the books... investors are anticipating estimates being broken.
Charts near their all-time highs are the cream of the crop. ABG gives us a technical and fundamental opportunity. Let's capitalize on this.
We will buy ABG in the morning on 6/5