AutoCanada updated May 8, 2018

AutoCanada is updated and rated Buy at $17.34. Based on trailing year earning it could easily be rated (higher) Buy. But Q1 2018 was quite weak and there is some danger that the weakness will continue. On the hand its recentĀ  acquisition of 8 dealerships in the Chicago area which also came with another large dealership in Illinois could begin to boost earnings immediately.

This stock had climbed back over $25 last Fall and it looked like the worst was behind it. But then Q4 did not show the big growth that Q3 had and Q1 2018 was quite weak. The stock had slipped under $18 in early 2016 (when almost all stocks dipped) and was down under $19 in mid 2017 before recovering and briefly touching $26. It could certainly recover to $26 and well beyond that. But this is likely to take time and of course is never guaranteed.

I added to my position today.