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10-29-2008, 12:13 PM | #1 |
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Lithia's stock is up 62% on yesterday's Earnings Announcement
There's no question that Lithia's stock has been pounded for the past year, but I'm happy to see that it's surging 62% today in response to yesterday's Earnings Announcement.
Although Lithia reported a Third Quarter loss due to one time charges they were able to report a profit from on-going operations. Most important, they reported that they have lowered their outstanding debt level to a point where they will be able to meet any future credit roll-overs with existing credit lines. They also indicated that they have increased the number of dealerships that they will sell/close from 14 to 29. Of the 29 stores they've targeted they have already completed 11 transactions and have 6 others pending contract. I also thought it was interesting that they were still able to gross $1,143 per vehicle in F&I, reporting a finance penetration of 72%, service contract penetration of 42% and Lifetime Oil Change penetration of 34%. The only surprise in the Conference Call was during the Q&A session where one analyst asked jokingly if they had filed bankruptcy. That's probably not a question that most CEOs would want to see in the Conference Call transcript. |
10-29-2008, 03:28 PM | #2 |
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Lithia finished the day up 123%
I'm impressed to see that Lithia closed the day up 123% - that's a nice return if you're long the stock.
Perhaps it was short covering? It will be interesting to watch the price action for the next few days. |
10-29-2008, 06:50 PM | #3 |
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That analyst is so crazy! He made some comments on a couple previous conference calls.
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10-30-2008, 09:11 AM | #4 | |
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Quote:
That said, when your stock is down 90+% I doubt that you want anyone to be making joking references to bankruptcy during your Conference Call. |
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