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Non-Tech : Sonic Automotive -- Ignore unavailable to you. Want to Upgrade?

To: Phil Jacobson who wrote (31)	7/8/1998 5:40:00 PM
From: Cary C	Read Replies (2) \| Respond to of 60

>>Hey, if the mo-mo guys find SAH I'll be the first to welcome a $30 price...just hope I remember this time to sell and buy back when they're gone.<< You and me both Phil. lol >>Looks like a lot of people think there's a lot coming down the pike. << In a recent conversation with Todd he told me that they were going to be talking to new institutional investors in the coming weeks. In the past when SAH has presented to institutional investors they have been very successful in getting their participation. I think some of what we have seen in the last two days is just that. I believe they are going to surprise to the upside in both the quarter and year end numbers.Currently they are projecting $1.25 for year end. A company with the growth potential that SAH has exhibited warrants at least a PE of 20. I believe they will come in around the $1.40 to $1.50 range. On a trailing PE of 20 that puts them between $28 to $30 at years end. I think with the aggressive acquisition plans that they have, they will need to arrange some sort of funding or secondary offering to help pay for the acquisitions. Personally, I would like them to do a secondary offering. It would not only provide a means for new acquisitions but also allow them to pay down existing debt. All of the acquired dealerships have been very profitable and I don't believe would cause much if any real dilution to the stock. This would also give more room to the float and allow for more institutions to want to be involved with the stock. It will be interesting to see how this plays out. Cary