Copart, Inc. (CPRT)

huge market share...barriers to entry in the segment...well run with strong execution

Foolish recomendation

130 North American yards with no debt. Well positioned to grow in credit-strapped environment relative to peers. Zoning restrictions to building new scrapyards provides strong barrier to entry. CPRT actively buying up small yards to expand. Recently instituted 19% price increase. Recently expanded to U.K. and will look to Asia and continental Europe next.

Copart, Inc...Stupendous vertue with an impecible ideal for selling salvage vehicles within the intolerable and variable market. This company seems to strive to corner the market of virtual bidding of secondary sales from auction. The overwhelming consumer base the internet sales portion reaches makes this small but impendous company shine within a dull sales market for cars and trucks. With the downslide of companies like GM and Ford and the unpridictabilty of fuel prices this company should succeed by selling off exceeds of product and insurance write offs. This company offers vehicles at auction from your home computer at discount and affordabilty. This is a sure win for the next FEW years until the new car sales market rebounds and energy consumption is tolerated by the short sales and supply and demand crisis.

:)

Tech in '08 will outperform

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Has a great niche in its industry that should last a lifetime!

they are a great player in a niche market with a great moat around them

FOOL PICK

car salvage

cprt

Hate to bet against a Fool pick, 5 star but it's too pricy now (up

40% in last few months). P/e is 25, revenue growth is low and slowing (12% 3 years ago, now 6%). Earnings growth can't be

far behind.

Could be there's something I don't know.

But if we're not buying growth, what are we buying?

Recent sharp correction below $40 makes this look like a good pick up. With downturn in economy used cars sales/parts etc are bound to gain popularity.

mf pick, i agree with

Yes-man, long-term, bought 1/25/08;
Mid-cap $3.5 B, salvage vehicles;
ROE 14.8, ROA 13.3, P/E 25.4, Beta 2.01

The valuation is rich, but it is a great long term pick. Willis is lifelong CEO and he is old school and knows what he is doing. Money is being made hand over fist in the USA. v2b is patented which helps build out the moat. the billion dollar question for the next 5 years is how well the uk expansion goes. if it goes well, I'll be rich.

CPRT is not a thrilling company, but what it has already done in the US is quite significant. CPRT essentially consolidated a very fragmented vehicle salvage market in the US, and it's trying to do the same in the UK. It's bread-and-butter comes from exclusive contracts with insurance companies as their transporter of choice for their salvaged vehicles. Integration of CPRT's practices into the UK will not be swift or without bumpy periods, but I think it will eventually occur and result in another case of dominance within a fragmented market. The result will be long-term gains in earnings & revenues, leading to a solid investment at today's prices.

The car part business is only going to grow as more and more drivers hit the road. It is only natural that the internet will supplement this business. People are always looking for a part to something.