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Registered
Join Date: Jun 2007
Location: Lake Oswego, OR
Posts: 6,037
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Lithia Motors. Based in Oregon. Has a P/E in the 10's as of yesterday. This is a well run, high margin company that is trading WAY under the S&P 500 average multiple. Look at the historical numbers. I have made similar (more, actually) on LAD as I have Apple. Downside? It is VOLATILE. Upside? The auto industry is consistently profitable. Americans LOVE to drive cars. Upside - 4 income streams: New cars, Used cars, Service and Parts (51ish% margins!!!) and Financing. My reservation is on their financing arm should the economy crater.
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