True Car (TRUE)

[r clarke]

True Car will take disproportionate hit in any market downturns.

"So, digital advertising can slip hard during a market crash, as can cyclical stocks.

What happens to a stock that has a little of Column A and a little of Column B?

That’s the problem with TrueCar Inc. (TRUE), which makes money from ad fees on the purchase of automobiles. TrueCar has already been struggling of late, forcing the company to bring in a new CEO.

The main issues has been the difficulty in managing relations with dealers, such as Autonation, Inc. (AN), that have concerns about the way TRUE puts together its ratings.

The new CEO is taking swift action to change course, but this will be a tough transformation to make. Meanwhile, growth has been dismal, with TRUE’s revenues inching up a mere 2% while net losses reached $14.7 million.

TrueCar also must deal with rivals including pure plays like AutoTrader.com, Cars.com and Edmunds, as well as more diversified players including Alphabet and eBay Inc. (EBAY). Even dealers are investing in their own digital efforts, which could lead to less demand for ad services."