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JimVanMeerten (57.35)

Copart - One man's junk is another man's treasure



May 05, 2011 – Comments (0) | RELATED TICKERS: CPRT

While I was screening on Barchart for stocks having great growth potential and also have current price momentum I can across Copart (CPRT) a company that acts as an agent to dispose of cars and other vehicles.  Since they mostly act as an agent they aren't a capital intensive company.  The price momentum is what got my attention.

Copart, Inc. (CPRT) provides vehicle suppliers, primarily insurance companies, with a full range of services to process and sell salvage vehicles through auctions, principally to licensed dismantlers, rebuilders and used vehicle dealers. Salvage vehicles are either damaged vehicles deemed a total loss for insurance or business purposes or are recovered stolen vehicles for which an insurance settlement with the vehicle owner has already been made.

Factors to Consider:

Technical Factors:

1 - 96% Barchart technical buy signal

2 - Trend Spotter buy signal

3 - Trading above its 20, 50 and 100 day moving average

4 - 7 new highs and up 3.29% in the last month

5 - Relative Strength Index 69.58% and rising

6 - Trading around 45.46 with a 50 day moving average of 42.73

Fundamental Factors:

1 - Wall Street brokerage analysts have issued 4 strong buy, 3 buy and 3 hold recommendations for their clients

2 - Sales are projected to increase by 12.30% this year and another 3.70% next year

3 - Earnings are forecasted to increase by 21.10% this year, 18.30% next year and 14.32% annually for the next 5 years

General Investor Sentiment:

1 - On Motley Fool over 1,970 readers have an opinion on this stock

2 - CAPS members vote 1,382 to 37 that the stock will beat the market

3 - The more experienced All Stars agree with a 543 to 8 vote

Summary:  The company is widely and positively followed by both professional and individual investors because of a consensus of growth in both sales and earnings.  Green companies are in so a capital intensive recycler should be on your watch lists.

Jim Van Meerten is an analyst for  Marketocracy Capital Management.  He shares his knowledge and experience from over 40 years of investing in stocks, mutual funds and ETFs on  in his daily blog -- Barchart Portfolio Blogs.

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