Autobytel Inc (NASDAQ:ABTL) has always been a relative, leading indicator to in my eyes. The paradigm in the U.S. may need to shift one day from Consumer Spending fueling GDP growth to Manufacturing Export fueling growth, but that day hasn’t arrived yet and it’s still the consumer, and consumer confidence, that is the juggernaut of GDP.
This Company provides car dealers and manufacturers, and individuals, with important information and research needed to purchase a new or used car; has it been in a wreck, submerged in a flood; that sort of thing and 17 year old online presence is now a trusted brand for the entire auto industry.
The stock of Autobytel Inc (NASDAQ:ABTL) has always been to inexpensive to get into, its top near $1.50 in late April. It is currently trading in the $0.85 range and yes, it was given the customer NASDAQ under $1; 180 day delisting notice in the middle of last month. I believe it can easily retake $1 requiring a 15% gain, and hold it for ten days and chase away the little dark cloud.
There are virtually no short sellers of the stock to apply downward pressure and hold down a bounce back. The shares have a modest forward P/E of 6.54.
The Company posted a very healthy YOY Q2 ’11 on August 4, but investors were too busy watching the broader markets tank and tank, to give much notice to Autobytel Inc (NASDAQ:ABTL).
Year over year for the qtr ended June 30. “Purchase Request” revenue, the Company primary generator rose 25%, due in part to its acquisitions last year of Cyber Ventures and Autotropolis. YOY advertising revenue, by the big car manufacturers and dealers was $988k, up 14%. And Gross Margins increased 41% YOY and Gross Profits increased 50%. The EPS was even vs. a loss of three cents in Q2 ’10.
Cars are the second largest ‘big ticket’ item in the U.S., next to housing being #1, and that’s why I’ve always considered the movement of cars, the buying and selling of them to be a leading indicator of how consumer spending was advancing or declining.
I think value hunters are looking at Autobytel Inc (NASDAQ:ABTL) to see if $0.85 is as cheap as they can it, that: it has reached a bottom. I think its testing $0.80 in late Sept as the floor was key and the shares rise to its current price are also a little bit of an indicator…
I haven’t, don’t, and do not intend on holding any of the companies mentioned in this article.