Lithia Motors (LAD) announced a profit of $7.2 million or 33 cents per share, before special items, in the third quarter, an improvement from $1.45 million or 7 cents per share in the year-ago period. This was attributed to increased sales due to the U.S. Government’s “Cash for Clunkers” cash incentive program for fuel-efficient vehicles. [...]

(LAD) Lithia Motors Reports Improved Quarter

Lithia Motors (LAD) announced a profit of $7.2 million or 33 cents per share, before special items, in the third quarter, an improvement from $1.45 million or 7 cents per share in the year-ago period. This was attributed to increased sales due to the U.S. Government’s “Cash for Clunkers" cash incentive program for fuel-efficient vehicles. The auto retailer managed to nearly meet the Zacks Consensus Estimate of 34 cents per share.

Revenues in the quarter declined 10% to $458 million driven by lower new vehicle sales. New vehicle sales fell 15% to $242 million while used vehicle sales remained almost flat at $136 million. Same store new vehicle sales declined 14.3% while used vehicle sales increased 3.9% on a year-over-year basis.
 
Lithia’s gross profit margin increased 190 basis points to 18.7%. New vehicle margin rose 110 basis points to 8.8%, used vehicle retail margin elevated 490 basis points to 15.3% and used vehicle wholesale margin went up 510 basis points to 0.4%.
 
Lithia had cash and cash equivalents of $4.4 million as on Sept 30, 2009. Long-term debt amounted to $214 million as on that date. The long-term debt to capitalization ratio stood at 45%. In the first nine months of 2009, the company had a net cash flow of $81 million from operating activities.

Lithia Motors is a Medford, Oregon-based automotive franchisee and retailer of 27 brands of new and all brands of used vehicles at 87 stores, which are located in 12 states. It sells new and used cars, light trucks and replacement parts. It also provides vehicle maintenance, warranty, and paint and repair services, besides offering finance, service contracts, protection products and credit insurance.

Read the full analyst report on "LAD"
Zacks Investment Research

If you are looking for dividend buys, here are some stocks going ex-dividend during the last half of July. Most of the following stocks have a PE below 20, all have PEG ratios below 2.5, and yields over 2.5%.

First Defiance Financial (FDEF) 7/9/2008 Yield: 6.62% PE: 8
Horizon Financial Corp (HRZB) 7/9/2008 Yield: 9.22% PE: 4
West Coast Bancorp (WCBO) 7/9/2008 Yield: 6.62% PE: 13
Whole Foods Market, Inc. (WFMI) 7/9/2008 Yield: 3.52% PE: 21
Washington Federal Inc. (WFSL) 7/9/2008 Yield: 4.75% PE: 12
BB&T Corporation (BBT) 7/9/2008 Yield: 7.78% PE: 8
Ennis, Inc. (EBF) 7/9/2008 Yield: 4.11% PE: 9
Capital Bank Corporation (CBKN) 7/10/2008 Yield: 3.72% PE: 13
Gevity HR, Inc. (GVHR) 7/11/2008 Yield: 3.90% PE: 22
Heritage Financial Corporation (HFWA) 7/11/2008 Yield: 6.08% PE: 9
Lithia Motors, Inc. (LAD) 7/11/2008 Yield: 11.86% PE: 6
Oxford Industries, Inc. (OXM) 7/11/2008 Yield: 3.82% PE: 12
Shaw Communications Inc. (SJR) 7/11/2008 Yield: 3.45% PE: 14
Watsco, Incorporated (WSO) 7/11/2008 Yield: 4.36% PE: 19
Abbott Laboratories (ABT) 7/11/2008 Yield: 2.65% PE: 22
The Bon-Ton Stores, Inc. (BONT) 7/11/2008 Yield: 3.87% PE: 16
City Holding Company (CHCO) 7/11/2008 Yield: 3.49% PE: 13
Corus Entertainment Inc. (CJR) 7/11/2008 Yield: 3.52% PE: 12
McGrath RentCorp (MGRC) 7/14/2008 Yield: 3.33% PE: 14
Quaker Chemical Corporation (KWR) 7/15/2008 Yield: 3.71% PE: 16
WD-40 Company (WDFC) 7/15/2008 Yield: 3.69% PE: 15
CBRL Group, Inc. (CBRL) 7/16/2008 Yield: 3.46% PE: 7
Royal Bank of Canada (RY) 7/22/2008 Yield: 4.66% PE: 12
Spartech Corporation (SEH) 7/22/2008 Yield: 5.89% PE: 28
Williams-Sonoma, Inc. (WSM) 7/23/2008 Yield: 2.59% PE: 11
The Clorox Company (CLX) 7/24/2008 Yield: 3.04% PE: 17
Zenith National Insurance Corp. (ZNT) 7/29/2008 Yield: 5.59% PE: 6
Lifetime Brands, Inc. (LCUT) 7/30/2008 Yield: 3.35% PE: 36
Bank of Montreal (BMO) 7/30/2008 Yield: 6.94% PE: 11

If you are unfamiliar with the concept of buying dividends, you should check out the article on dividend buying. Also check out the list of dividend definitions.

Author does not own any of the above.

By Fred Fuld at Stockerblog.com

I've received questions recently about all the stock dividend dates, so I thought I would clarify them for you. In addition, for those who are interested in 'buying dividends', I have listed the stocks going ex-dividend during the first two weeks of July. Here's what each of the dividend dates mean.

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Record date: the day when you must be on the company's books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Here are a list of stocks going ex-dividend during the first two weeks of July.

JPMorgan Chase & Co. (JPM) 7/1/2008 3.93% PE: 10.4263

SYSCO Corporation (SYY) 7/1/2008 2.99% PE: 16.8408

Tate & Lyle PLC (TATYY) 7/1/2008 3.32% PE: 17.991

Bristol Myers Squibb Co. (BMY) 7/2/2008 6.22% PE: 19.4786

Gentex Corporation (GNTX) 7/3/2008 2.60% PE: 18.9321

Toronto-Dominion Bank (TD) 7/7/2008 3.58% PE: 12.1352

Ethan Allen Interiors Inc. (ETH) 7/8/2008 3.29% PE: 12.02

Lincoln National Corporation (LNC) 7/8/2008 3.34% PE: 11.0073

Progress Energy, Inc. (PGN) 7/8/2008 5.74% PE: 15.8925

Verizon Communications Inc. (VZ) 7/8/2008 4.71% PE: 18.6114

West Coast Bancorp (WCBO) 7/9/2008 5.42% PE: 14.9482

Whole Foods Market, Inc. (WFMI) 7/9/2008 3.01% PE: 23.0432

Gevity HR, Inc. (GVHR) 7/11/2008 3.44% PE: 24.4908

Lithia Motors, Inc. (LAD) 7/11/2008 9.21% PE: 7.8222

Oxford Industries, Inc. (OXM) 7/11/2008 3.27% PE: 13.0653

Shaw Communications Inc. (SJR) 7/11/2008 3.61% PE: 22.4132

Abbott Laboratories (ABT) 7/11/2008 2.66% PE: 21.9705

The Bon-Ton Stores, Inc. (BONT) 7/11/2008 3.13% PE: 19.9036

Corus Entertainment Inc. (CJR) 7/11/2008 3.14% PE: 13.1121

McGrath RentCorp (MGRC) 7/14/2008 3.13% PE: 14.8498

Quaker Chemical Corporation (KWR) 7/15/2008 3.02% PE: 18.1866

CBRL Group, Inc. (CBRL) 7/16/2008 2.70% PE: 8.8124

Author doesn't own any of the above.

By Fred Fuld at Stockerblog.com

China Unicom (CHU) announced it was merging with China Netcom (CN) and selling its CDMA business to China Telecom (CHA). The new China Unicom will become a full telecom service operator after the deal and won't operate two wireless networks at the same time. However, China Unicom will have difficulty integrating China Netcom's fixed-line telecom business.... [More...]