LAD - Lithia Motors: A+ Quality 30% ROE Buybacks 50% Upside

• I began accumulating Lithia Motors in 4Q 2021 after seeing the auto dealer screen well against my target criteria.
• Criteria: A+ S&P Quality Ranking, Buy/Strong Buy from three favorite analysts, 50% fair value upside, P/E <10., 20% Risk-Adjusted ROE.
• On Feb. 9 Lithia posted earnings and revenue exceeding analyst expectations and confirmed aggressive share repurchase.
• I will add to my current position in Q1 at <$320 which appears to provide an okay margin of safety.
• Lithia and other auto dealers, however, are not without risk.

For further details see: