AutoNation shares hit two-year high amid automaker turmoil - South Florida Business Journal:

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Analysts and company officials have said AutoNation stands to gain in some marketa after the closure of independentdealerships – many of which are focusecd on one brand. “People believe that when we get to the othert side ofthis recession, that we will be one of the last men AutoNation spokesman Marc Cannon said Thursday. “We are well unlike many others in thedealership business.” also has announcer it will phase out several brands, includingf , Hummer and Saturn. However, one analyst is not sure AutoNation'w stock is priced properly at this Rex Henderson, of Raymoncd James, ranks AutoNation as “underperform.
” Henderson suggests investors may be placingf too much confidence in the fact that the companyu has been so vocak about cutting costs. He said he believes the auto industryh recovery will take a long and the stock has movedtoo far, too “AutoNation works hard to make sure their dealerships are They’ve already trimmed some dealerships that weren’gt performing well,” Henderson said. “They did very well in management coste inthe quarter. The market believes auto salezhave bottomed. They believe the cost-cuttingg efforts of AutoNation will position them bette r when autosales revive.
” Fort-Lauderdale-based AutoNationj (NYSE: AN) has struggled in the difficulty auto sales environment that began with last year’sd high gasoline prices, but it managed to post a profit for the firstg quarter of 2009. The company is the nation’w largest auto retailer. Shares slipper 20 cents to $17.70 in afternooj trading. The stock price set a new 52-week high on closing at $18.10. The 52-week low was $3.9 on Oct. 24.