TraderMark

AutoNation's Story Is Good: Does Valuation Matter?

good point charlie


On Aug 18 05:31 PM fcharlie wrote:

> Donald Trump once said that "The best deals are made when no one
> wants them". AutoNation was a steal last fall when no one wanted
> it... when everyone was panicked about GM Ford and Chrysler going
> bankrupt. People thought the reverberations from those three going
> under would kill AutoNation. Eddie Lampert was buying tens of millions
> of shares at those prices. Eddie Lampert isn't buying anymore. Insiders
> have sold large chunks recently. Now is the part where Wall Street
> upgrades it over and over and sells it to everyone else.

S&P 500 Stocks with the Highest Short Interest

FASB allows banks to hold toxic stuff on books and not admit it

the govt has said they will not allow any major bank to go

the govt allows banks to fund with FDIC backstop

the Fed has set rates to nearly zero, allows banks to borrow low and lend at any rate over zero

The banks have stacked a series of fees onto consumers

no one seems to care about balance sheets because the yield curve is so steep that any 4 year old can run a bank and make money now. As long as we dont care about the old loans its all gravy from here

So its a bit hard to short these.


On Jul 14 09:20 AM Henry Buttal wrote:

> Interesting that, other than C, the financials are not really participants.
> Perhaps this quarter will be as strong as signaled by the GS earnings
> announcment.