Ashleigh Rogers
Long/short equity, growth at reasonable price, value, banks

Wait For Credit Acceptance Corp. To Cool Down

Consumer auto loan company Credit Acceptance Corp (NASDAQ:CACC) has had a very good quarter. The stock price rocketed up from ~$110 late last fall to ~$130 today, and the firm beat 4Q2013 EPS consensus estimates by $0.06 a share. Revenues were up 2% quarter-over-quarter, and 10% year-over-year. Now though, just when investors may be getting the most excited about the firm, I am losing enthusiasm. While the CACC headlines looked good, the firm also saw elevated operating expenses and new advances to auto dealers seems more sluggish (up 8% y-o-y) than it should have been (I expected up 15% y-o-y) given the virtual euphoria in the markets over everything auto related.

Further, Autonation (NYSE:AN) CEO Mike...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details