Asbury Automotive Group (ABG)

**nodoodahs** Sat Feb 11, 2006 10:56 am

Asbury Automotive Group (ABG)
http://nodoodahs.blogspot.com/2006/02/why-abg-why-now.html

**blast_investor** Sat Feb 11, 2006 2:31 pm

Hi nodoodahs:

My opinion is that ABG is fine stock, not an expensive stock, but it is not dirt cheap either. Its valuation is in line with its peers.

If you look at its book value, it has huge amount of goodwill. Excluding goodwill and intangible values, its price to book ratio is pretty high. Profit margin is low, return on equity or return on asset are all low.

My concern on this stock is that this stock may just be dead money sitting there. There is not too much risk there, but I do not see real big upside from here.

I noticed that you used quite lot of Technical Analysis with value analysis there in your page. I am not sure that will work combining two very different investing methods.

**nodoodahs** Sat Feb 11, 2006 2:46 pm

I'm not so sure they are that different.

It seems to be working so far. I'll keep you posted!

**blast_investor** Sat Feb 11, 2006 3:11 pm

This topic was debated last year, here is the old thread:
http://value-investing-forum.com/viewtopic.php?t=63

nodoodahs wrote: I'm not so sure they are that different.

It seems to be working so far. I'll keep you posted!

**blast_investor** Sat Feb 11, 2006 3:56 pm

I moved the discussion to another thread:

http://value-investing-forum.com/viewtopic.php?t=773

This is no longer on ABG any more.

**nodoodahs** Fri Feb 17, 2006 4:54 am

Back to ABG. Up about 4% since I posted about it. I bought in the Friday just before posting, it had been on my watch list since I first blogged about it.