KMX

V

vanzandt

Its getting bloated... $59.54 as I type.

I drive by the store, I see little to no activity on the lot.

I noticed they started shutting their lot lights off after close. New policy? We can't pay the electric bills? Big dealerships leave their lights on all night. Who knows, maybe they are just being good custodians of Mother Earth. Not a good way to sell cars though.

Some would say they'll make money as we reach "peak auto", as people opt for quality used cars. I don't buy it.

They carry their own paper, and I bet their default rate is rising.

We'll see. Nothing has changed since their last ER when they tanked as low as $46. A 20% plus bounce? On no news?

No dividend.

Overhead from hell.

Maybe their run as of late is a short squeeze. 17% of the float is short. Today's Put/Call ratio was 4.5 at one point. Ditto yesterday.

I think its a good short. But for some reason I just don't trust this company. Dirty money.

Best leave this one alone.
 
OMG....Get Granny's SSN...Call the reverse mortgage hotline.... and buy puts on this mother f***cker.

PM Zandy as to where to mail my X-Mas presents. I want a Tesla. The fast one.
 
18% of the float is short. That being said... I think the short squeeze has been going on the last 30 days....

"Thats gold Jerry.... Gold"! -Kenny Banya
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I am going to do some Peter Lynch recon on KMX today,.... helping someone find a nice car for a good price.

Zandy will do the Jim Rockford and and talk to everyone at the damn place while she kicks tires.

Questions: Sales, moral, financing, how busy, how many cars they are buying wholesale, employee turnover.... I'm gonna get it all.
 
Hmmm. 3 car carriers there. Couldn't tell if they were loading or off-loading. Inventory is clean as all get out. Probably 3 families on the lot. I saw one test drive going out.

They are obviously doing a "title pawn" deal as they have an area with pos cars they would never put on their lot. This corresponds to their wholesale ops where they buy cars outright and then run them through the auction. Slim margins on this.

I truly think their biggest revenue driver is getting people financed. Go figure. People without money will buy a nice(premium priced) car if they can get someone to tote the note. Now this one I have to research. I know KMX has a finance division that has historically been accretive to their bottom line, ...but who eats the defaults?

The employees were fat, dumb, and happy. All was great. But most of them were just hanging out like vultures.

Bottom line... for a Saturday afternoon... foot traffic was slim to say the least. Cars are nice. Super clean. As was the entire environment. But wholly cow.... the real estate, inventory, and overhead.... thats gotta cost major bucks. There is no way they are making money.

Earnings are scheduled for Sept 21st. Last time around they gapped down from $54ish to $48ish and then a subsequent fall to the high $45's. What has changed? Nothing. Does that matter? No. Not with this high of a short interest. Its manipulated to be sure. But its just like Tesla.... who wants to run it up when its already astronomical. So is it safe to short at these levels? For me it is, but I still think it can go higher. But no matter what,.... this time next year, it will be much lower. -vz
 
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