March 19, 2017

On Friday, the S&P 500 was down 0.1% and Toronto was down 0.5%.

AutoCanada was down 9.7% after reporting earnings and an executive departure.

Our report on AutoCanada is updated and remains rated Buy now at $21.80. I am a bit concerned about what is happening to management cohesiveness given this departure. But the underlying business model remains intact. The strategy of acquiring additional auto dealers and consolidating them into this larger company will likely continue to work over the years.