Copart, Inc. (CPRT)

When I read the interview with CEO Willis I could feel his passion for his company. I also noted that he has reduced running his business to some easily understood metrics with a simple underlying philosophy, like 'do what you say you will do'.

Copart seems to have built a sustainable company utlizing technology to efficiently locate, acquire and then track and sell their inventory. It is a beautiful thing!

My perspective on Copart leads me to see the business as a green play coupled with a great sales company. They recycle/resell materials ranging from the heavy iron frames to the precious metals in the vehicle computers and the vehicles themselves. It is in a business that creates its own supply of inventory with increasing demand regardless of economic conditions. It has an operating model that can be reproduced AND it has a CEO who loves what he does and is heavily invested personally.

I like this company.

Think about it the more vehicles on the road the more wrecks. The storms, floods, (global warming
NOT) more smashes and crashes every minute.

I've seen their operation at ground level. They run a tight ship. The web is a super plus.

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?

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.

Copart is now recommended by all three of my favorite idea-generators: The Motley Fool, Jim Cramer, and SmartMoney. This agreement does not happen very often, but when it does, it has shown to be a good buy signal. In addition, the CEO and President earlier this year offered to take $1 per year salary in exchange for a strong incentive-based compensation plan, the decision to be left to the shareholders. More cash than debt, still small, and a leader in industry, I think this has potential.

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.

SA
16-3
6
B
RS 72 65 58

Sales Growth* +18.10%
Income Growth* +17.10%
Gross Margin 47.48%
Net Profit Margin 23.97%
Total Shares Outstanding 91.3 Mil
Market Capitalization 2.68 Bil
Earnings/Share 1.40
FY(7/07) EPS Estimate 1.41
Current P/E 21.50
FY(7/08) EPS Estimate 1.57
Forward P/E 21.10

This is one of two top stocks picked by the Gardner brothers. Copart may be boring, but it is good financials. I have corresponded with Tom over the years and believe him to be a prudent investor. With the market in a free fall, this conservative approach seems wise to me.

This company has it all.

Fool rulebreaker and a history of 20% returns year over year for the past five years.

If all the fools keep "sticking it to the man" (actually sticking it to themselves) by destroying the U.S. Auto industry, then the junkyard business should boom

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.

Especially in a recession when people are likely to hang onto their cars longer. This company continues to look like a good investment. As cars get older they need parts and this company is a good deal all around.

Copart Inc has managed to continue to increease their profits over the course of the year even though their stock price is down, even though auto sales are down. They sell over the internet in auction style bidding and continue to improve sales. They should weather the remainder of the economic storm and do well when things clear. I expect them to double from the current $6 a share to $12 a share in the next year if not sooner.

scrap steel recession looms

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

Expanding international operations and the neverending push for greater efficiency in making vehicles last as long as possible, at the lowest possible cost. How could business not grow?

In my area, allmost all of the insurance companies use copart.

Only game in town relating to on-line salvage yards. US based . now expanding in UK and Canada. Over 125 "automobile junlk yards"all involved in a proprietary auction system.