Darspal S Mann
Long/short equity, growth at reasonable price, special situations, deep value

Dealertrack Is On A Good Track

Dealertrack Technologies Inc. (NASDAQ:TRAK) is under pressure due to concerns around rising interest rates killing the auto sales, integration risks from new acquisitions, expiring exclusivity with Ford dealers and valuation, but these issues offer a perfect reason to dig deeper into the company that is fast shaping into a premier play on technology adoption by auto dealers with significant subscription based income stream.

Over the coming months, fundamentals stand to benefit from cross-selling opportunities between the fast growing advertising offerings of the recently acquired Dealer.com and existing services for dealers & lenders, which may add to the existing 15-20% organic growth being achieved via adding new states, adding new lenders and gaining market share.

On almost all...

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