CarMax, Inc. (KMX)
The Compamy including its wholly owned subsidiaries, is a retailer of used vehicles in the United States.
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The Company may not even survive if we go through a second recession.
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There is less momentum, less volume, and less buying going on. We are in the last part of this rally.
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The 1929-1930 equity rally (coming out of The Great Depression) lasted 147 days and the market was up 46%. It has been the same amount of time since the March, 2009 low and we are up about the same percentage. It’s déjà vu (paramnesia), so prepare for a drop of about the same percentage (85%).
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Over bought.
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Hopes of TALF and other gvt actions won't help auto sales much, and will be less of a help to used car sales
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Overvalued compared to industry.
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No bargaining just a higher price than you can get anywhere else. I don't understand. If anybody wants to pay a lot for a used car I've got a couple I'll let you have for the ridiculously high Kelly Blue Book price that Carmax references.
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Credit issues will hurt all of the auto sellers; KMX is a good company, but they will all feel the pain. This stock was around $1 per share in 2000 - it's probably headed there again before going up.
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I am calling an underform position on this stock and AN today. Although, I will be purchasing put options on both by 12/19/08 (when KMX reports earnings). I expect a horrible report. Both of these stocks are in debt, diminishing margins, less revenue, and more depreciation. Look at the numbers. No loans available, and the people that are defaulting on loans most likely are the ones with loans on used cars. The automaker deal just fell through, but I believe it will work out in the end. While dealers continue to offer great deals for new cars, used cars 1-6 years old will not be able to be sold for a profit. Good job on cutting jobs... Too bad you can't change your business model. :(
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good GOD this is an ugly stock. wait for the next big up day and short before december 19th when they report terrible earnings! increasing depreciation expenses, diminishing margins, less revenue, lots of debt. i see this stock at $3.00. don't think that this is a good trade just because warren buffet and bill gates are dumping money into AN and KMX.. they are extremely long - term.
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high fixed costs will eat Carmax alive in this industry (used cars) with declining margins
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No credit = no car - new or used. Who has enough cash to buy a car?
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Unless this has an endless lines of investors, it's going down. More of a personal/family opinion than a technical. Long family history in the used car buisiness.
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This stock will start to rebound when the large car market comes back strong. I am going to change my stance in the coming months b/c if Buffet has it, he is in it for the long-run and so will I.
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Car Max is one of the nations largest seller of used vehicles and even with the current fuel prices, I still do not think that they will meet exceptiions of wall street
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I am betting against Buffett here. Might night be the smartest thing to do with real money.
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car sales down
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A friend of mine owns an auto dealer and says things have been slowing up lately. I'm not a fan of big car lots.
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This stock will take a dive, should be at or under $20 in no time
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Two years ago I thought Car Max was the best business venture since apple pie. They had the best prices on cars of both dealers private sellers. I now see since the word has gotten out about them they are no longer competitive. Their prices are the same if not higher than other dealers.

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