I think Alec Yagy of Morgan Stanley hit the nail on the head when he raised the question about when investors should finally start to see returns from all of the investments Lithia has been making. 

And he brought up a really appropriate illustration, saying that even on the call management pointed out SG&A (selling general, and administrative expenses) are right at the company’s five year historical average.  But Lithia is 70% (at least in terms of annual revenues) bigger than they were 5-year ago.  “Shouldn’t there be some leverage?  When do we see the benefits from the initiatives?”  He appropriately pressed. 

I share Mr. Yagy’s concerns.&# ...

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Related Companies: Lithia Motors