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Lithia Motors, Inc. (LAD) operates as an automotive franchisee and retailer of new and used vehicles in the United States.
The company sells new and used vehicles, and replacement parts; provides vehicle maintenance, warranty, paint, and repair services; and offers related financing, service contracts, vehicle protection products, and credit insurance services.
As of February 21, 2014, the company offered 28 brands of new vehicles and various brands of used vehicles in 96 stores, as well as online at Lithia.com.
During the fiscal year ended December 31, 2011, it sold three stores: a Chrysler Jeep Dodge store in Concord, California; a Volkswagen store in Thornton, Colorado, and a GMC Buick and a Kia store in Cedar Rapids, Iowa. The Company offers a 60-day, 3,000 mile limited warranty on the sale of retail used vehicles. It also offers a 3-year, 50,000 mile warranty on parts used in its service repair work and a 2-year warranty on tire purchases.
In 2011, the Company sold 43,273 new vehicles. New vehicle sales also have creates profit opportunities through manufacturer incentives, resale of trade-in vehicles, sale of third-party financing, vehicle service and insurance contracts, and future service and repair work. In 2011, the Company represented 26 domestic and import brands ranging from economy to luxury cars, sport utility vehicles, crossovers, minivans and light trucks. The Company purchases its new car inventory directly from manufacturers.
Shares have formed a bullish "cup and handle" and higher share prices are expected for this stock.
52-Week Trading Range: $48.18 - $81.02
Entry Point: $79.68
Stop Loss: $75.65
Target Price: $87.65
LAD reached our target price after it agreed to buy its competitor.
