Guru Alan Fournier (Trades, Portfolio) graduated with a degree in mechanical engineering from the Wentworth Institute of Technology in Boston. After working several years in the engineering field, Fournier decided to switch career paths. In 1988 Fournier began his investment career at Sanford C. Bernstein. Fournier started to gain momentum and he seized an opportunity to work alongside David Tepper (Trades, Portfolio) at Appaloosa Management. Fournier then went on to found Pennant Capital Management in 2001. The hedge fund currently manages 36 stocks and has a total value of $4.71 billion.
In the third quarter of 2015, Fournier purchased 4,703,799 shares of LKQ Corp. (LKQ, Financial).
LKQ was founded in 1998, and the company offers a broad range of replacement systems, components and parts to repair automobiles and light, medium and heavy duty trucks. LKQ is a global company that operates in the United Kingdom, France, Mexico, and Central America. In January 2014, LKQ announced the acquisition of Keystone Automotive Operations, a leading distributor and marketer of specialty aftermarket equipment and accessories in North America.
LKQ has a market cap of $8.6 billion, a P/E ratio of 21.11, an enterprise value of $10.07 billion and a quick ratio of 1.16.
Below is a Peter Lynch chart for LKQ.
LKQ has good financial strength according to GuruFocus with a 9/10 rating and a 0.09 cash to debt ratio. LKQ also has good profitability and growth with a 7/10 rating according to GuruFocus. The company's operating margin is 9.81%, which is higher than 77% of the companies in the global auto parts industry.
As long as people drive cars, they are going to need replacement parts. LKQ has good financial strength and a 5-star predictability rating. Fournier believes that this is a great company to invest in, and I agree with him.
Cheers to your investment success.
Disclaimer: Author does not currently own any shares in this stock.
