Rust Belt Capital

Just started digging in to SAH today - what are your thoughts aside from the above? after a cursory glance, surprised that their gross margins are so low given their high weighting towards luxury dealerships. Low EBIT margins and high SGA&A/gross profit not encouraging, but that is an area where they should be able to improve by centralizing store-level processes and standardizing best practices (a la AN's Shared Service Center) I like the increased weighting towards luxury - i believe luxury brands tend to have more/longer OEM warranties, and higher service retention for dealers. Which should dovetail nicely w/ cyclical P&S tailwind. Will update once i've gone through more of their material

DCG, I was wondering if you could share any thoughts you have on the relative quality of the publicly traded dealerships? I have been doing work on them and to me AutoNation seems to be the gold standard, I really like what they've done with the branding strategy and the fully transactional website they are rolling out. Would love to hear feedback from some one that works directly with the large dealer groups!