AutoCanada is down 7.4% to $22 after announcing weak earnings and an executive departure.
(In trying to react to this news I had to change this post a few minutes after first publishing it as I had at first not seen the earnings release.)
Yesterday on Yahoo Finance I had only seen the press releases about the credit limit extension and the executive departure. The earnings press release is stamped 3 hours later on Yahoo.
Despite current weak earnings and the write off and the executive departure, I think the underlying business model probably remains strong. I will know more after I fully review the earnings release.
I have had an order in for some 10 weeks to buy if it dipped to $21.90. It has been trading mostly above $24 and it did not look like I would be able to buy at $21.90. It opened today at $21.06 so my order went through at $21.06. This is the nature of a below market order. It could be filled because a stock simply sort of drifted lower. Or, as in this case, because of bad news.
Some people would really hate to buy on bad news in case it gets worse. By placing a 90 day order below market I took the risk of buying on bad news. Time will tell if this turns out to be a buying opportunity.
Speaking of car dealerships, I had written on this site in the past that if you look around any community the car dealers usually seem to some of the larger and more prosperous businesses. I am happy to own a piece of that. I wrote briefly about car dealerships here and here and probably a few other times in the newsletters over the years.