Ken Heebner (Trades, Portfolio) is a growth oriented investor who co-founded Capital Growth Management, a money management firm with more than $6 billion under management. Recently, he initiated a long position in CarMax (KMX) by buying 105,000 shares of the company. Last month, Carmax reported strong Q4 results with its EPS of $0.67 coming well ahead of consensus estimates. The company's fundamentals look encouraging. Here's an analysis of the company in detail.
CarMax is the nation’s largest retailer of used cars, based on the 526,929 used vehicles it retailed during the fiscal year ended Feb. 28. As of the end of fiscal 2014, the company operated 131 used car superstores in 64 metropolitan markets. CarMax is the first used vehicle retailer to offer a large selection of high quality used vehicles at low, “no-haggle” prices using a customer-friendly sales process in an attractive, modern sales facility. It allows customers to shop for vehicles the same way they shop for items at other “big-box” retailers. In addition the company also provides financing alternatives to its customers through CAF, its own finance operation, and third-party financing providers. Continue Reading »