Sonic Automotive could breakout the USD 20 resistance in the short term.
The valuation levels remain intact with an attractive valuation level (PER at 13.3x for 2012 and 10.1x for 2013).
Graphically, the security is up 33% since the 1st January. It seems able to continue this uptrend supported by moving averages and will soon test the USD 20 mid-term resistance. We anticipate a crossing of this level, given the upward orientation of the stock in the medium and long term. Above USD 20, a buy signal will be given.
Therefore, investors could take a long position in Sonic Automotive, on crossing of the USD 20 mid-term resistance. A stop loss should be placed at USD 19.46.
Sonic Automotive, Inc. is an automotive retailer in the United States. The Company operates through three segments. The Franchised Dealerships segment provides comprehensive sales and services, including sales of both new and used cars and light trucks; sales of replacement parts and performance of vehicle maintenance, manufacturer warranty repairs, and paint and collision repair services, collectively, Fixed Operations; and arrangement of third-party financing, extended warranties, service contracts, insurance, and other aftermarket products, collectively, finance and insurance (F&I) for its guests. The EchoPark segment sells used cars and light trucks and arranges third-party F&I product sales for its guests in pre-owned vehicle specialty retail locations. The Powersports segment offers guests sales of both new and used powersports vehicles, such as motorcycles, personal watercraft, and all-terrain vehicles; Fixed Operations activities; and F&I services.
SONIC AUTOMOTIVE, INC. 
