CarMax, Inc. (KMX)

SpecialSituation (26.70) Submitted: 4/14/08 11:58 AM : Start Price: $18.62 KMX Score: -23.18

KMX represents your "Typical" strong, competitively entrenched business run by a capable, vested, and shareholder-oriented management selling for substantially less than its corporate net worth.

Given enough time, current fears about the state of the economy and its potential effects on KMX's bottom line will fade as its underlying earnings power becomes self evident. With such a long runway still ahead, this deep moat company should continue to increase its returns on invested capital while simultaneously expanding its revenue and geographical reach.

Bottom line...Odds are this corporate juggernaut will continue to do what it has always done...increase its operating and net margins as it grows, and grinding out a large and growing stream of profits in the process.

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