Wall Street has been enthusiastic about the upcoming aging of American cars. With rising unemployment, high consumer debt, and auto sales in the tank, analysts expect consumers to buy more used cars and drive their current cars longer, which will require more independent repair.
New shorting activity is warning that this is probably an exaggerated theme – consumers can just as easily delay buying used cars as well as making repairs to their clunkers. In particular see Munro Muffler Brake (MNRO), Group 1 Automotive (GPI), O’Reilly Automotive (ORLY), America’s Car Mart (CRMT), and Sonic Automotive (SAH).
| Short Interest as % of Shares Outstanding |
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|---|---|---|
| MNRO |  |
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| GPI |  |
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| ORLY |  |
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| CRMT |  |
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| SAH |  |
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