Sonic Automotive, Inc.

Sonic Automotive, Inc. (NYSE: SAH) is a United States-based automotive store. Its operating segments are 1) Franchised Dealerships, which offers various services to its customers, including new and used car sales, replacement parts sales, vehicle maintenance, manufacturer warranty repairs, service contracts, financing, insurance, and other aftermarket products and 2) EchoPark Segment sells used cars and light trucks in pre-owned vehicle retail outlets and arranges finance and insurance (F&I) product sales for its consumers.

Key Highlights

• The company reported YoY growth of 57% in net revenues to USD 3.07 billion in Q3FY21 (ended September 30, 2021) compared to USD 2.55 billion in Q3FY20.
• SAH's net income expanded to USD 84.49 million during Q3FY21 vs. USD 59.82 million in Q3FY20.
• As of September 30, 2021, the company had cash and cash equivalents of USD 220.08 million and total debt of USD 1.68 billion.
• SAH's Q3FY21 cash cycle of 38 days is relatively lower than the industry median of 44 days.
• Its ROE was 8.7% in Q3FY21 vs. the industry median of 6.1%.
• On January 18, 2022, SAH acquired Sun Chevrolet in Chittenango, New York. This is the company's 6th Chevrolet franchise and 111th dealer location.
• On October 28, 2021, the company declared a quarterly dividend of USD 0.12 per common share, paid on January 14, 2022, to shareholders of record on December 15, 2021.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• The stock is currently trading close to the mid-band of its 52-week range of USD 39.25 to USD 58.00.
• SAH's stock price decreased 4.69% and 4.72% in the past three and six months, respectively.

Technical Price Chart (as of February 11, 2022). Analysis by Kalkine

Conclusion: Considering the top and bottom-line growth, industry above ROE, technical indicators, and associated risks, we recommend a "Watch" rating on the stock at the closing price of USD 48.61, up 0.54%, as of February 11, 2022.

*The reference data in this report has been partly sourced from REFINITIV.

Putnam Municipal Opportunities Trust

Putnam Municipal Opportunities Trust (NYSE: PMO) is a non-diversified closed-end management investment company that aims to deliver a high level of current income tax-free income in the US while also preserving capital. The Fund invests in a portfolio of municipal bonds issued by or for the benefit of entities primarily involved in the municipal bond market and that excellent offer returns.

Key Highlights

• The company reported YoY decline of 4.18% in net revenues to USD 10.08 million in H1FY22 (ended October 31, 2021) compared to USD 10.52 million in H1FY21.
• PMO's net income declined to USD 2.13 million during H1FY22 from USD 44.62 million in H1FY21.
• Its net margin was 21.1% in H1FY22 vs. 424.0% in H1FY21.
• There is free fall in the PMO shares and hovering well below its crucial long-term as well as short-term support levels of 200-day, 100-day, 50-day, 30-day and 20-day SMAs implies a steep bearishness in the stock.
• On weekly price chart, PMO shares have breached all the crucial supports and consistently The stock is leaning towards the lower end of its 52-week range of USD 91.55 to USD 221.00.
• PMO's stock price decreased 12.01% and 15.55% in the past three and six months, respectively.

Technical Price Chart (as of February 11, 2022). Analysis by Kalkine

Conclusion: Considering the decline in topline, sharp decline in profitability, technical indicators, and associated risks, we recommend a "Watch" rating on the stock at the closing price of USD 12.38, down 0.40%, as of February 11, 2022.

*The reference data in this report has been partly sourced from REFINITIV.