"We're being patient. When we see good deals with good yields, we take advantage of them," says vice president and CFO David Kay. The plan is based on buying car lots from strong dealerships and leasing them back to the sellers, while maximizing interest rate spreads on the deals.
It achieves several objectives. "We want to maintain good relations with clients and increase net asset values and shareholder value," Kay explains.
The company expects to yield a 10.9% dividend on a running-rate basis. Analysts project that the company's stock, now at about $13.81, will rise to $17 to $18 per share during the next 12 months.
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