Starting to build a position in CPRT today.
yahoo.marketguide.com
Per Yahoo, "Copart, Inc. provides vehicle suppliers, primarily insurance companies, with services to process and sell salvage vehicles through auctions, mostly to dismantlers, rebuilders and used vehicle dealers."
The stock's come down recently as the company lowered its guidance. On an absolute basis, the p/book is now maybe okay, the p/sales high (my opinion). Marketguide above shows no free cash flow. ROE had been increasing, but it's been down last couple of years. If I assume ROE going forward will be about at a lower 11%, the stock @~$7.5 is still just a bit too expensive by the ROE model I sometimes use.
I'm buying CPRT because of its consistently good profit margins.
Book value is growing steadily, and there's no long-term debt. I see a profitable niche business selling at an attractive (to me anyway -g-) price.
Paul Senior
Jmo, even if I do continue to be wrong many, many times - and at a faster and more frequent rate it seems. |
