Thanks for the write up. I agree a quality company but no margin of safety. An investor could lose a lot of money in this stock if multiples mean revert. I wonder at what point it comes under pressure to return cash or use it. Now has $3.4 b in cash and ST investments. Pays no dividend, hasn't historically bought back much stock. Also wonder about what the FV of its land holdings would be - carried at $2.0 b. Perhaps some hidden value?
Thanks for your comment! I agree Copart stock does look expensive right now. Regarding its cash position, if I remember correctly, the company holds a large cash reserve as a buffer against economic downturns or disasters impacting the car fleet. It signals reliability towards insurers!
Thanks again Summit, hope everyone enjoys!
🙌👌
Thanks for the write up. I agree a quality company but no margin of safety. An investor could lose a lot of money in this stock if multiples mean revert. I wonder at what point it comes under pressure to return cash or use it. Now has $3.4 b in cash and ST investments. Pays no dividend, hasn't historically bought back much stock. Also wonder about what the FV of its land holdings would be - carried at $2.0 b. Perhaps some hidden value?
Thanks for your comment! I agree Copart stock does look expensive right now. Regarding its cash position, if I remember correctly, the company holds a large cash reserve as a buffer against economic downturns or disasters impacting the car fleet. It signals reliability towards insurers!