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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (54218)	8/2/2014 10:17:20 AM
From: Paul Senior	Respond to of 78744

Auto subprime. Yes, maybe it is increased competition in the sector. And ALLY may be entering it more as its cost of capital comes down. marketwatch.com CACC and CRMT trade at high multiples of book, the valuation is dependent on the margins and high ROE holding up. CACC has traded at high multiples of book, high (profit) margins, and high ROE for most of the past ten years. I look to it to continue to do so. CRMT roe/margin numbers not as good. Otoh, it works for me because its business model is different - being buy here/pay here dealerships. I'm intending to add to my CACC position around these levels.

To: Spekulatius who wrote (54218)	2/26/2016 1:29:07 PM
From: MCsweet	Read Replies (1) \| Respond to of 78744

ALLY, I have been accumulating ALLY over the past several months. Solid earnings with high coupon preferreds being paid off, selling below book and will be buying back stock when CCAR is approved. Ok car loans are not my favorite business, but I like it better than loaning to energy companies. For that reason, I don't think ALLY should trade down with other companies like C and JPM on global macro concerns. Only if we have a bad recession do I think ALLY gets hurt. ALLY is more negatively exposed to rate increases, but they don't seem as likely lately. MC