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TAKE 120: CarMax races by larger rival AutoNation

Monday, Jul 15, 2013 - 02:39

July 15 - Hennessy Funds' Brian Macauley says auto dealer CarMax has better organic growth opportunities than its bigger competitor and feels the company could grow earnings and sales at 15% or better

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It's a drag race -- -- take what's -- Bryant but probably have to convince me why he likes CarMax. Auto dealers. Over its larger rival out of patient got two minutes across the finish line. -- -- Number one reason -- like car. I've differentiated business model that before its large group -- What does that mean different. Well -- Jesus ain't no haggle policy for customers to buy cars. Which of course is very different from the traditional. Coming at you name them right that it's not at tech it's just like internationally telling -- right that's right. -- -- -- -- -- -- -- -- -- -- -- -- -- -- Well they actually are not that they're similar in size and revenue that has more sales towards. An -- Additionally -- Because they only have about a hundred stores auto nation -- 207 years department says a lot of. How about I don't look like it. Well on the surface PE. AutoNation is a little bit cheap but AutoNation does have some dead or not. Additionally we believe that government has a lot more organic growth opportunity at -- Just by ivy and what does -- mean in terms of bottom line numbers went looking for her earnings growth at that car. So formats that are burned about two dollar fare this year we think that over the next five to ten years. They'll be able to grow their earnings per share about 15%. Per year sales. Profit margins are. And -- operating profit leveled out. 7% now we think that they could cripple -- but for the that's part of still bruised right so what's the risk that. Well with any auto dealer with any large ticket consumer discretionary -- that's obviously. At how high can operate there and -- That's a tough question. You know it's about a 43 dollar stock today you know if it wouldn't grow its earnings per share fifteen. Percent from here. You know you get a stop maybe because you don't -- -- college thanks for joining me at this week take one funny I don't accept this --

TAKE 120: CarMax races by larger rival AutoNation

Monday, Jul 15, 2013 - 02:39

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