The grocers aren’t the only ones having a bad day. Take a look at the auto dealerships getting hammered on an analyst downgrade at Bank of America/Merrill — who is warning of a ‘looming tsunami’, lowering expectations and price target.
BofA/Merrill analyst John Murphy downgraded Lithia Motors to Underperform from Neutral and cut its price target to $92 from $106. The analyst lowered US sales and North American production forecasts saying year-to-date sales tracking down 2%, following a likely peak in 2016, and there is a “looming tsunami” of off-lease volumes that will hit the industry in 2018, further pressuring vehicle pricing. As a result, Murphy expects a quick and material downturn in the US auto cycle and lowered estimates across the industry. For Lithia Motors, the analyst said benefits from diversification efforts and leverage is reflected in valuation.
The sector is down 6% for the day.
Channel stuffing – the colon is full and stuffed bitchez.
I had a shit for brains cousin in Ohio. Dearly departed now, but going back 40 years as near as I can remember she would trade in her still unpaid for car, for a new one every other year. Eventually she lost her badass farm house for not paying property taxes. Long story short, she died broke in a small jerkwater town in a HUD apartment the size of a shoebox, alone.
I believe 90% of baby boomers will face the same reality. Homeless, broke and alone. Fuck ’em. They thought they would live forever, sitting on the beach drinking rum just because their parents won WW2.
That’s pretty cold man. How did leasing a car turn into jacking granny off a cliff ?
Someday, you will join your shit for brains cousin and she will say to you, “you criticized me for being a fuck up but look at you now. No better off than me.”
The auto industry will soon collapse. i was in it for 25 yrs, total ripoff for naive and ignorant consumers/fish. Greed runs the industry, like so many others. American autos are over priced garbage that depreciates faster than rain coming down. When this collapses, watch out. Hundreds of supporting suppliers will take an enormous hit. Time to set up soup lines.