Subject: Re: Q4
...net earnings per retail location were “only” down about -5% from last year. Overall net earnings were only off -1% so hopefully the five new locations will start to perform this year.

2. In the press release they indicated they plan to ramp up share buybacks this year. They barely offset dilution last year so that would seem to be a positive as well. They were routinely buying back enough to retire 5% of the common shares prior to 2020 and it would be nice to see them return to those levels if possible.

They continue to plug along grossing the same $2250 per vehicle. Once the used car market ramps back up they should be back to netting $3.5M to $4M per location. Just a matter of how long it takes.


I'm late to this party, but I agree, this is a waiting game, with no immediate signs of any major improvement. To invest in this $11b market cap company you have to believe that the $479m in net earnings they made last quarter is very likely to bounce back closer to the $888m they made in pre-COVID 2020 and not drag on for too long, taking their P/E back from 23 to 12. I am maybe little less confident about how likely that is, but I still think it's a fair bet, given their historical rates of growth.

dtb