Monday, June 30, 2014

AutoCanada: CEO sell Millions

Summary
  • The CEO is selling between $115 and $150 million of AutoCanada stock.
  • The company is selling $200 million in equity, doubling its equity capital.
  • These actions confirm the overvaluation of AutoCanada.
In my recent article AutoCanada: An Easy Short, I demonstrated the overvaluation of AutoCanada (OTC:AOCIF) (TSE:ACQ). This thesis was recently validated when AutoCanada announced it was raising $200 million in equity. Beyond this, Canada One Auto Group (CAG) is selling $150-200 million of ACQ shares in a secondary offering. Both of these offerings are quite intriguing for different reasons, and will be investigated separately.

Click here to read the press release.

You can read the rest of the article here:

http://seekingalpha.com/article/2292655-autocanada-ceo-sells-millions


I sold the company, the CEO is selling the company, and senior management is selling the company.

That leaves the question, who would buy the company at the current price?


Best Regards,
Kevin

Disclosure:  I am short ACQ

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