There are strong rumors on the Street that billionaire investor George Soros’ Soros Fund Management LLC is looking to acquire a major car dealer. CNBC’s Phil LeBeau reported on this recently.
The Market's 'Sweet Spot'
“We have talked for some time about how in the dealership space, this is really the sweet spot of the market, because they have got so many off-lease vehicles that are going to be coming out over the next couple of years. You have got ageing vehicles that needs repair,” LeBeau said.
“So, it’s no surprise that when these reports came out over the weekend that the Soros Management Fund was in San Francisco at least a couple of representatives at the National Auto Dealers Association annual meeting.”He continued, “At that meeting, according to reports in automotive news through a couple of representatives from the Soros fund, who were meeting with some dealers looking at whether or not they should invest, perhaps buy, strike up some kind of deal with some of the big, larger dealership groups that are out there right now. And that’s really the idea here that if this is a deal, it will likely be for a large group.”
Why Would The Soros Fund Be Looking At Dealership?
“In the auto space, when you look at the dealerships, they are entering the sweet spot of the market. Look at things from their perspective.”
“You have got a large number of vehicles that are going to be coming off-lease; you’ve got a strong cash-flow business, and that’s really what you would want to invest into these businesses for. They have a strong cash-flow,” LeBeau added.© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.