Carmax reported its earning and it was up 17%. I believe it is a seasonal thing and the sales might inch up a little because of the hurricanes but I guess it is a good idea the fade this rally but you have to be patient. It is not that they have a niche technology or an approved drug. That is my belief and I want to hear from you. Now it is traded at 73.5 up 6.7%
I know past might not repeat in the future but take a look at the weekly chart. The same jump to around $75 happened a while ago and then .......
Sure I did. I believe it will drop and this run up is mostly because of short covering. That result does not justify this rally. Sales was up 11% but from what? Car sales is very seasonal.
They said : "CarMax Auto Finance.(1) Compared with last year’s second quarter, CAF income increased 12.5% to $107.9 million." It is 12 million dollar more profit and the market cap of CarMax increased by 1B today. It exactly reflects the performance !!. One Billion for every 12 million.
Well, I tend to agree with ya on this one Haji. We're looking at a squeeze. Give it a week and then jump in. Don't go today.
100% agreed. Car sales is not like tech that you can export or dominate the market. It has its cycle and it shows itself in the weekly chart that I posted. It is a short squeeze now. Some buyers who are affected by hurricane will not be able to pay back their car loan and it will show itself in their next report.
I looked up the weekly chart first that doesn't show today's action and I said: that stock is ready to break out upward. Then I switched to the daily chart and I saw I was late... But yeah, even if they don't have any special technology, the hurricanes should help a lot...
You might want to take a look at Lear Corp... LEA.... for a short at 171 here. Auto parts. Its all hype.