Catalyst: Group 1 is emerging from a period of substantial earnings misses and estimate cuts associated with lapsed expense control, tough year-ago comparisons as used car volumes got a significant boost in Gulf states following Hurricane Katrina, and difficult conditions in the housing-challenged California market. GS sees accelerating earnings growth as the company cycles far easier comparisons beginning in the second half.
Notablecalls: Must say I couldn't believe my eyes on Friday when I saw no interest whatsoever following the wonderful call by Morgan Stanley. I blamed it on the shorts, as the stock was ruthlessly chopped down on open. Stuff likes this comes with the territory when there's a 20% short interest.
And today we have Goldman Sachs putting GPI on their Buy list. This is bound to put fire under the shorts. I continue to be positive on GPI here. The $40 leash stays.