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...

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