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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: - with a K who wrote (17344)	7/2/2003 2:05:37 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78719

CPRT. -With a K, I still have it. P/e and p/s have both come down from prior years. They still look high to me. Company gets trashed on Yahoo board, apparently for accounting issues and for gouging customers. I believe they are dominant in the car auction business. There are opportunities to both expand and to close under-performing units. With CPRT I am focused on its very good profit margins. Based on that, I consider fair value for the stock (currently $9.30) to be about $18-$21/sh. I find even $18 an uncomfortable number though, because it implies a p/e of 28x on '04 earnings est. of .67. That's high. OTOH, the stock has had an average p/e of 28x or greater in several past years. I have CPRT in a package of auto related stocks, and somehow that's kept me from feeling that I should increase my small CPRT position. But after writing this, I'll consider it. Thanks. Paul Senior