Activist Stocks
Long/short equity, deep value, special situations, growth

Lithia Motors: Buy New, Buy Used, Just Buy

Lithia Motors (NYSE:LAD) continues to be the champion of the small-cap auto retail space. It's already up 100% YTD after posting the highest quarterly adjusted net income in history. And over the last five years, while the S&P has returned just under 50%, all the small-cap auto retailers are up over 100%, with LAD up an impressive 1,380%.

In just looking at that chart I get an uneasy feeling in my stomach, one that's not unlike the feeling I get when a roller coaster is trucking up the steep incline right before it topples over the top and rushes toward the ground at 70 plus mph. And yet, the company has given us no reason to feel uneasy....

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