Kevin Graham
Long/short equity, deep value, long-term horizon

AutoCanada: An Easy Short

(Editor's Note: Investors should be mindful of the risks of transacting in illiquid securities such as AOCIF. AutoCanada's listing in Toronto, ACQ.TO, offers better liquidity.)

I don't typically share my stock purchases, but this is a unique situation in that I am shorting a stock and I am seeking to bring about a more rational price in the shortest time frame possible.

The stock is AutoCanada (OTC:AOCIF, TSE: ACQ), listed on the Toronto stock exchange. Simply put, the company owns and operates around 34 car dealerships in Canada. The reasons why I am short the stock are explained in the graph below.

(click to enlarge)

Trees don't grow to the sky, and stocks don't go up in...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
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