Long Position on ABG @ $33.22 on 1/4/2013 (Momentum)

Asbury Automotive Group (ABG) operates as an automotive retailer in the United States.

The company offers various automotive products and services, including new and used vehicles; vehicle maintenance, replacement parts, and collision repair services; and financing, insurance, and service contracts. Its new vehicle sales include the sale of new vehicles to individual retail customers and commercial customers.

The company’s used vehicle sales comprise the sale of used vehicles to individual retail customers and other dealers at auction. As of December 31, 2011, it operated 99 franchises, including 79 dealership locations in 18 metropolitan markets in 10 states. Some of its dealership names are: McDavid, Crown, Nally, Gray-Daniels and Greenville.

Yesterday, auto sales were reported by various automakers. The numbers were better than expected. Those reports should bode well for ABG.

Shares are heading higher in an upward "trading channel," and higher prices are expected for this stock.

52-Week Trading Range:   $21.25 - $33.96

Entry Point:   $33.22

Stop Loss:  $31.56

Target Price: $36.55

Updates

2/4/2013 2:04:56 PM

We closed this position at $35.41 (6.59% gain) since our 30-days is over. If you elect to stay in, please adjust your stop losses up.

Position closed on 2/4/2013 at price of $35.41 with a 6.59% gain in 31 days.

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