DEPN short term bounce play

Sales of cars and trucks in the US jumped 6% in October 2014 to mark the biggest and best month for such sales in 2014. The news has served to buoy the markets as economists and investors anchor their optimism on consumer spending.

My latest alert relies on these strong numbers and the company has been delivering some strong numbers of its own.

DEPN supplies automotive part items to top DIY enthusiasts and has a database of more than 1 million customers. The company operates heavily in the aftermarket auto sector which was worth more than $196 billion in 2011.

In a recent announcement, DEPN confirmed that its FY 2014 saw a soaring of gross transactions to $1.85 million with net revenue of $672,800. The strong performance delivered a profit margin of 36%. The company also confirmed that gross transaction volume grew 43% and net revenue was up 25%.

The big FY 2014 could get even better given the strong rise in the automobile market. October car sales jumped 6% over 2013 and marked the best sales for cars and trucks since 2007.

Traders who act on current market valuation of .05 capitalize on discounted pricing – DEPN has hit .25 over the last 12 months.

Investor Highlights

DEPN has a database of more than 1 million DIY automotive enthusiasts who help power demand for its catalogue of products available at carmonkeys.com.

DEPN has reported big numbers for FY 2014, including gross transactions of $1.85 million, net revenue of $672,800 and an increase profit margin of 36%.

DEPN is poised to benefit from the surging growth of car and truck sales. October 2014 saw one of the biggest sales months since 2007.

DEPN is up 385% since August and has seen a marked improvement in its average volume to 281K.

DEPN is massively undervalued at current levels. The play has hit a high of .25 over the last 12 months and is once again gathering steam.

DEPN’s current RSI is 52 which opens very solid bounce potential from the current trading price of .05

About DEPN

DEPN (Delaine Corporation) is a rapidly growing e-retailer of automobile parts and services with strong management and proprietary technology.

DEPN online store CarMonkeys.com launched in July of 2013 focuses on supplying used automobile parts, with a specific emphasis on the unique needs, constraints, and concerns of the “Do-It-Yourself” (“D-I-Y”) consumer.

DEPN’s database contains an inventory of just over 1 million available SKU items, and its online store features an extensive product line, including used automotive parts and accessories.

Banner October 2014 for US Car and Truck Sales – Up 6% Since 2013 and Best Sales Since 2007

Lower gas prices, longer financing arrangements and increased consumer confidence are pushing American car buyers toward bigger, more expensive cars. Offering fresh evidence of a sustained rebound in the U.S. automotive industry, most major manufacturers saw multi-year highs or all-time highs in sales volume in October, according to figures released by manufacturers on Monday.

“When shoppers are paying less at the pump, they have more money in the bank to save up on big purchases,” Jessica Caldwell, senior autos analyst for automotive pricing and information provider Edmunds.com, said in an email on Monday as automakers revealed U.S. new-auto sales figures for October. “While gas prices certainly breathe extra life into the Tahoes and Range Rovers [SUVs] of the world, the wealth effect is just as likely to motivate shoppers to pull the trigger on [purchasing] all vehicles big and small.”

Automakers reported an 6% percent increase in year-over-year sales in the U.S. last month. The seasonally adjusted annualized rate exceeded the forecast of 16.3 million for October, to about 16.5 million or 1.28 million vehicles for the month. With two months left in 2014, U.S. new-car sales are on pace to hit the highest rate since 2007, the year before the 18-month Great Recession sent the auto market skidding off course. Depending on performance for the last two months of the year, 2014 sales could easily eclipse 2007’s annual sales of 16.1 million. In 2009 that figure touched 10.4 million in the wake of the recession.

“Were continuing to see a lot of strength in trucks and SUVs which is no surprise with where gas prices have gone,” Eric Lyman, specialist in auto resale valuation and information provider at TrueCar Inc. “Also we’re seeing a positive trend of higher transaction prices and lower spending on cash incentives.”

Last month, the ratio of what consumers were willing to pay for new vehicles to how much automakers were offering in incentives (such as rebates) was flat compared to October of last year, and down from September. This means automakers are getting more money for each vehicle they sell compared to last year. The trend should continue next month, before cash incentives will rise during the December sales push in which automakers try to get their annual figures up as much as possible before the end of the year.

One development to watch is the growth in the amount of time consumers have to pay off financed vehicles, which are at historic highs fueled by the country’s low-interest-rate monetary policy. Automakers are offering zero interest for years, which is prodding consumers to buy while rates are low. Rising interest rates, expected as early as next year, could adversely impact sales by 2016.

“Financing has been creeping up steadily,” Alec Gutierrez, senior markets analysts at automotive pricing and industry information provider Kelley Blue Book, said in a conference recall on Monday. “It’s now to about 66 months.”

Volkswagen broke a long-running streak of declining sales last month, when it delivered 8 percent more cars than in October 2013 thanks to the arrival of the new Golf and a rebound in Jetta sedan sales. Nissan benefitted from its new Frontier pickup truck launch and stronger demand for its core sedans, which snatched car-market share away from all of Ford’s cars except the Fusion.

Both Ford and GM did very well in trucks and SUVs, but GM sales overall edged less than a percent while Ford was the only major manufacturer to see a decline as it prepares for the launch of the 2015 F-150 pickup truck, which makes up a third of company auto sales. Japanese automakers took much of the fire out of American automakers’ sedans last month with Honda reporting a 6 percent overall increase, led by an 8 percent jump in its luxury Acura division. The newly designed Honda CR-V helped push deliveries of the model to 30 percent last month.  Toyota sales jumped 7 percent thanks in part to the 2015 Camry and a 12 percent rise in Toyota truck sales.

Recent Developments

Delaine Corp. Announces Fiscal 2014 Year End Financial Results

Wyckoff, NJ / Accesswire / November 17, 2014 / Delaine Corp. (DEPN), whose innovative online store CarMonkeys.com was only launched in July 2013, announces FY 2014 Gross Transactions soared to $1.85 million with a net revenue of $672,800 – a profit margin of 36%.

With a fourth quarter net income of $198,000 and total assets growth of 44%, the company realized growth in shareholder equity which increased by 31%. Delaine’s revenue growth in the fourth quarter was realized through a strong start-up of sales with big box automotive after-market retailers. The company reports no long- term debt during this period.

Analysis comparing the fourth quarter to the averages of the first three quarters reveals that:

a. Gross Transaction Volume grew 43%

b. Net revenue grew 25%

Sales have been growing steadily in spite of a very limited marketing budget – typical of a company in its early development. The company expects even greater increases in transaction volume and revenues in the next year due to a number of reasons:

1. Retaining a new Chief Operating Officer with greater experience in e-commerce.

2. Implementation of a new marketing plan focused on increased name recognition of the CarMonkeys.com brand, attracting new customers as well as repeat sales especially by the big box after-market retailers.

3. Increased product introductions

4. Extended labor installation warranties.

5. Increased personnel to handle increasing transaction volume and to maintain a high level of customer service and support.

The strong results for DEPN should be your catalyst for moving strong on the play. Those numbers mean one thing: gain potential.

Start your research now.

To learn more about DEPN please visit their website: http://carmonkeys.com/

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