Copart, Inc. (NASDAQ:CPRT)

CAPS Rating: 4 out of 5

The Company provides vehicle suppliers, insurance companies, with a range of services to process and sell salvage vehicles over the Internet through the Company's Virtual Bidding Second Generation Internet auction-style sales technology.


Player Avatar ennuihead (96.77) Submitted: 12/21/2008 9:36:53 AM : Underperform Start Price: $13.50 CPRT Score: -34.89

I don't hate this stock. But I don't believe the hype about this eBay for car salvage. It sounds so ten years ago ("Hey, we got a web site -- we're a dot com too!"). And wow their web site is cheesy -- it *looks* like 1998. The company makes money and delivers a solid return. Return on invested capital is fabulous. But what prevented me from pulling the trigger on this stock is I can't get my head around what their advantage is. What prevents their customers from dealing directly with insurance companies. As I learned in their annual report, there are trade organizations that do exactly that.Their key advantage? From what I can tell, it's their eBay like auction. Why couldn't other companies do that just as easily? Why not eBay itself?Also, I don't quite buy the valuation.

Report this Post 3 Replies
Member Avatar yormoneyman (73.90) Submitted: 3/19/2009 6:10:04 PM
Recs: 0

In my opinion, this is a great stock because of the financials. (no long term debt, great management, and growth)

Member Avatar ennuihead (96.77) Submitted: 3/24/2009 12:48:29 PM
Recs: 0

You obviously know more than me. My pick has been a dud. I was looking for a reason to invest in this company and didn't know enough about them. The strength of the company has been evident since I bet against it.

Member Avatar JtHExperimental (20.93) Submitted: 6/22/2009 5:30:06 AM
Recs: 1

According to this ...

... there are significant barriers to entry due to environmental and zoning issues.

I'm losing on this one, as well. I red thumbed it more for curiosity's sake than anything.

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