CarMax (KMX) - a recent IPO of a Circuit City unit Message Board

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Non-Tech : CarMax (KMX) - a recent IPO of a Circuit City unit

KMX 33.23

+2.7%

11:37 AM EST

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To: Umnik who wrote (16)	3/15/1997 6:39:00 AM
From: David B. Higgs	of 67

Although I have no real insight and in recent months my opinions have proven to be somwhat wrong (like buying CarMax at a price higher than the IPO price), my guess is that three items are impacting the short term price. The used or new car business is highly impacted by changes in interest rates. Rising bond rates and concerns over future Fed actions may be causing selling. Circuit City, CarMax's "parent company" has recently experienced less than good news in both retail sales and racial hiring and promotion policies, both of which may be causing a "guilt by association" problem for CarMax. Thirdly, CarMax has been quite in recent weeks while Republic Industries (AutoNation) has been buying everything in sight. This, of course, may or may not work for Republic, but at least it keeps shareholders interested. What's the last news we have heard from CarMax? I understand, CarMax and AutoNation will soon be going head to head in the Atlanta market. The results of the battle should be telling as to the longer term success of both companies. In the meantime, it helps to do what I do daily. Repeat three times, "I'm in it for the long term". Regards, Dave

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