Our other special focus this week is the automotive sector. With the slowing economy, we were curious about consumer interest in this space. We spoke with analyst Efraim Levy, who told us a little about where consumer interest lies, with regards to auto dealerships:

TWST: As you talk with investors about this space, what’s the interest level in these auto dealers at this point?

Mr. Levy: Right now, the interest level, if you judge it by the stock prices, has been decreasing. For 2007, the S&P Automotive Retail Index was down 12.9% and that contrasts with the S&P 500 being up 3.5% for the year. The reason that it went down, I believe, is because of the fears of slowing automotive demand and the weaker US economy that contributes to that slower automotive demand. Since the beginning of 2008 (through January 22), that group has been down significantly, which I think helps to create some opportunities as you look out over the next 12 months.

For the full interview with Mr. Levy, including a look at auto dealerships in 2007 and an outlook for 2008, click here.

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