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

To: Paul Senior who wrote (54338)	1/2/2015 6:11:12 PM
From: Paul Senior	Respond to of 78717

Auto finance: I'll up my Credit Acceptance (CACC) position a little here. I looked at ALLY (GM's ex) -- low price/stated bv and its new freedom from government ownership are positives. Plus some diversity with its internet auction business. However I like CACC's low p/e compared to its high roe. Also I like CACC's business model better (I may be wrong though.): CACC pairs with the auto dealership to split profits on the finance deal. The relationship is structured such that the dealership has an incentive to review the ability of the customer to make payments (and not default) if the dealership uses CACC for financing. I expect that IF lower gasoline prices persist, used auto/truck demand will increase and the auto companies (new/used/and repair) will have another good year. finance.yahoo.com