Wednesday's Alert is AAWC
Good afternoon traders and readers everywhere!
Upside potential doesn’t get much better than what we believe we uncovered during our probe with AAWC. The company is perfectly balanced with technicals and fundamentals that we believe could turn over some serious solid gains.
With today's pullback in price, AAWC appears ready to blossom into a flower of gains tomorrow. We could witness a day-traders' paradise in the making...with spikes and swing trades galore in its chart.
AAWC or Alexandria Advantage Warranty Company, has been in business since 2008. Providing new and used car warranties on multiple different scales appealing to a broader consumer base with all levels of disposable incomes through its highly developed franchised and independent automobile dealerships.
US auto sales are expected to hit a record high in 2015. Right now the auto industry is in the midst of a cycle where sales and pricing are very strong. U.S. auto dealerships will climb to 13.83 million in 2015. That would put them slightly above the previous record of 13.8 million in 2004.
Here's an excerpt from a recent article regarding the auto industry:
“The buying behavior is supported by a combination of low interest rates, consumer confidence, the impact of lower fuel costs on discretionary income and, in some cases, fresh product,” Stephanie Brinley, senior analyst at IHS Automotive, said in a statement.
Full Article:
http://www.stltoday.com/business/local/gm-the-u-s-auto-industry-headed-for-record-sales/article_f42f64f3-c730-5da1-b796-eee6fc4545b4.html
The strong auto sales outlook is a bullish buy signal for companies like AAWC.
We are anticipating a major uptrend for AAWC, which we believe is a grossly undervalued stock.
Currently, the franchisor has over thirty franchised outlets nationwide. They have several more pending franchise applications. The franchisor also owns intellectual property, and has a family name that has been associated with the business for over fifty years.
AAWC is trading near rock bottom and looks as if it’s preparing for another jolt from plenty positive support. Directionally speaking, we are looking at a play that is primed and ready to go north. Entry is just fractions of a cent and when you see how high this gifted selection has gone you’ll understand and see why around .003 cents is an absolute steal.
We feel excited for the anticipation that AAWC will break through the past resistance and possibly gift anyone generous gains just in time for the holidays.
BUSINESS SUMMARY
(AAWC - Alexandria Advantage Warranty Company)
http://www.alexandriaadvantagewarranty.com
AAWC in the business of providing car warranties for new and used cars through franchised and independent car dealerships. The Company has been in business since 2008 and is currently marketing its warranties to more than eighty dealerships in the greater metropolitan Washington, DC area and will be expanding to cover other parts of the country shortly.
AAWC has a number of multi-option warranties options aimed at different customers' needs. The rates will offer warranties for new, used/low mileage, used/mild mileage and used/high milages with three tiers under each. This business model allows for strategic positioning to a wide customer base. AAWC’s management’s focus will be to ensure the best rates and the best quality coverage to our customers.
As a third anticipated revenue stream, AAWC will eventually provide floor plan financing to independent car dealerships. Currently AAWC is working through licensing requirements for some specific states in order to properly position itself as a floor plan financing entity.
The Company has no liabilities and a strong asset base. Significant growth is expected for the Company in 2015. They are also increasing their dealer reach and negotiating with warranty business partners to provide discounts to their dealers and their customers who purchase their warranties.
MARKET OUTLOOK
The Auto Extended Warranty Providers industry has a low-level of capital requirements. In 2014, for every dollar spent on labor, the industry spends about $0.11.
The worldwide automotive industry has been enjoying a period of relatively strong growth and profitability, and annual sales have reached pre recession levels in some regions.
There are plenty of reasons to be optimistic about the broader auto industry for both the short and long term.
While trends show a slump to 1% annual growth, the periods up to 2018 show increasing promise as markets are becoming more liquid with higher disposable incomes. As the economy improves and consumers have higher per capita disposable income, more consumers will purchase new cars and consequently more extended warranty plans.
Auto industry executives and experts tend to be optimistic about the U.S. market, forecasting annualized sales in North America in the near term of a relatively robust 16 million cars, up from only 13 million in 2008.
http://finance.yahoo.com/news/auto-industry-racing-ahead-rising-191407011.html
http://www.prweb.com/releases/2013/7/prweb10967380.htm
http://www.strategyand.pwc.com/perspectives/2015-auto-trends
There you have it folks! Get AAWC on your rockin' radars for Wednesday's session!