Jimanders

BofA's Merrill Purchase: Good for America, Bad for Them

It would be hard to comment without restating want has been said. But I agree with the view presented - and BofA has used their clean Balance Sheet to help the overall system. At the time - having ML go down would have caused additional panic to an emotional economy. The one thought was that BofA could have changed the terms and reduced the cost to shareholders. Second - I really hope that the entire story - who knew what - who talked to who - what was said but not written or reported by the Feds, BofA and ML during the process which would help provide a better understanding of why. My sense is there is more to the story and events which would add some understanding. However, if true - ML executives and especially the CEO should be prosecuted and punished.

Bill Gates Helps Out Autonation

Amazing - Lampert keeps buying - Gates keeps buying - the stock on the market keeps going down - and what are the sellers thinking. They bought high and sold low - unless you are a mutual fund with a run on the fund - why are you selling at these prices? These guys are buying this company on the cheap while everyone sells their stock at these low prices? This is not the time to be selling??? It amazes me that the herd will follow the herd to create a market bubble and will pay too much for something - then follow the herd again and sell low. Following the herd is not how to invest.

Bill Gates Helps Out Autonation

They usually cannot buy 45 days before earnings and I until 3 days after earnings release. Hard to say - but private money would see a nice return on the investment - vs. the market pricing. At this point, they are managing well given the lowest level of new car sales in years - and management has been able to deliver a nice earnings trend. They have deployed cash flow capital to best use given the stock price - market consolidation and dealership elimination during this market downturn will only serve to better position AN. The emotional market pricing is providing the private capital investors the opportunity to buy cheap and realize better profits long term.

AN could be an interesting addition to Sears - but there are other options. The addition of the Gates group into the mix will also make options interesting. The market does not control the share votes on this one. Also with so little stock traded on the market - the market price can be dynamic -

This should be a $20 stock - and it really is a $25 stock if we assume the auto market will improve. America needs transportation - and the auto is a part of life. It may not be gas powered in the long term - but it will be an auto powered by something. The margins on these smaller vehicles will be much better as demand increases and as those who switch add comfort options to the base car.

So sit tight - buy shares at these low prices - should have bought more at $7 ish.

Bill Gates Helps Out Autonation

exactly - and Lambert and Gates and others will take this private at these prices - althought they will need to pay $16ish to get all the stock - and since they control the board - they won't need to pay $20 to $25 -
The issue is - the smaller investors should be allowed to stay in the game - and realize the $1.20 with growth starting in a couple of years - or $25 per share.

Bill Gates Helps Out Autonation

:) Actually not on point at all - first of all I have significant investments in AN at this point in a private fund - with a very low basis - maybe 11 ish. However that was not the point of my comments - You should respond with some analysis. There are a number of companies at this point - where the emotional market has pushed the pricing to levels well below the value of the companies future cash flows. A smart investor - not emotional speculator - evaluates the cash flows today and speculates on future cash flows. AN is clearly a well run company - with good cash flows - especially given the automobile market today. Even at today's cash flow using a DCF valuation and assuming the retail auto industry never grows beyond the run rate of today - AN is a good investment. I manage a private fund - and have taken long positions on companies like AN - enhanced with LEAP options looking for 1/2010. Those who are investors vs. market speculators and market emotion drivers - look at the value of the investment - and only look at the emotional market to provide buying opportunities.

The sad part is AN will potentially go private at a price much lower then the value of the investment in assets - playing the emotional market enhanced by the media - to buy the company below the intrinsic value of the producing assets.

In the end - economics is eventually recongized in the market - but emotion will drive many from using sound investing judgement. I don't know you - but most of your original comments were on track - however it amazes me that financially oriented analyst bait their work with attention grabbing titles - suggesting something like bailout or saving a company going down for the final count.

Today - too many people watch the stock market - and too many people have their life savings and pension in the market. 30 years ago the average worker was not interested in the market - today most workers and the general population are feel their financial security is tied to the market - and they panic when the media sensationalizes the facts - pushing the market and public to extremes. It would be nice if the media would take time to educate the general population on investing for the long term and understanding market cycles.

Jim - older and wiser

Bill Gates Helps Out Autonation

This guy has no clue - when you invest - you invest. Buying stock has nothing to do with today - it has to do with tomorrow. It amazes me how people try to influence stock prices daily - when buying stock is a long term play. Auto retailers will continue to be important and people will purchase transportation. And those vehicles will need financing and repair. The car or truck my be powered differently - but it will be powered and people will buy them and people will travel from point A to point B. This company is making money - is low cost - has the right model. Today the consumer is waiting to see how technology changes the automobile - it won't eliminate the automobile that is for sure.

If you are an investor - this is a good company - if you are a speculator thinking you can make 30% in the next day - you should not be in stocks at all.