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September 2007



Reiterating Carmax (KMX)

September 20, 2007 – Comments (0)

Carmax cut its outlook for the year because it felt the market was not so good, and the stock tumbled 15%. I'd like to reiterate my pick. Carmax is the category killer in the used car industry. It has no meaningful competition, and lots of room to grow. Even though the market soured (external factors), it still met earnings estimates!   [more]



reiterating UTI Worldwide

September 10, 2007 – Comments (0)

UTI Worldwide is down about 18% since I picked it. At the time, I said I liked the stock, but wasn't in a hurry to buy it in real life. I've reconsidered; I may very well purchase it.

I'd previously compared UTIW to Expeditors International (EXPD), a freight forwarder that I think has a wide economic moat (an established industry reputation and relationships, and an excellent database). Expeditors is much more profitable, and focuses more on freight forwarding. UTI went for the one-stop outsourced logistics solution, and bought a number of smaller companies to give itself a global footprint. Additionally, I believe there is a secular growth trend of firms outsourcing their logistics.

I previously noted that Mulenkamp fund (MUHLX) was an owner. I don't think that's true right now. However, other notable funds that own UTIW are Royce Total Return (RYTRX), Columbia Acorn (ACRNX), and Pax World Balanced (PAXWX). The latter is an SRI fund.  [more]

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