Alpha Gen Capital
Deep Value, CFA, registered investment advisor, contrarian

LKQ's European Strategy Accelerates With Rhiag Acquisition

Since our write-up of LKQ Corporation (NASDAQ:LKQ) shares are only up marginally despite the growth in the fundamentals of the business. Their recent third quarter results showed impressive gross margin expansion and continued strength in their parts and services core business. We are reiterating our bullish thesis on the shares given the strong tailwinds we expect from the consolidation of the industry, robust SAAR rates, and organic growth in their mechanical and collision part distribution segment.

Rhiag-Inter Auto Acquisition Boosts Euro Expansion

We think Europe remains the company's largest opportunity as the market there remains highly fragmented. The company made a push into Europe with the acquisition of Euro Car Parts in 2011 and Sator in 2013. But

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