Metals Recycling exposure

Outperform - Price 26.47 on Jan. 13
by Barrington Research Associates

Copart provides remarketing services to process and sell [used] vehicles over the Internet through worldwide auction-style sales. It sells principally to licensed vehicle dismantlers....Our new projections call for a flat year for FY09 EPS at $1.75 increasing to $1.96 in FY10. During fourth-quarter 2008, wholesale used-vehicle prices declined on average by 9.54%....[However,] CPRT should generate solid excess cash flow over the next two years, at $137 million and $208 million, or $1.60 and $2.44 a share, respectively. And the stock sells at a discount to private-market valuation. We maintain our Outperform and 40 price target (51% upside). Market cap: $2.3 billion.

From a recent Mad Money show:"This is another company that's made its quarter and is doing well. I want to be a buyer of Copart."

From a recent Mad Money show: "This is another company that's made its quarter and is doing well. I want to be a buyer of Copart."

management

Cars

possible

see above

This stock continues to innovate in the field of wrecked cars. Their latest endeavor is to set up an online exchange for used cars. Trades for 14x EBITDA despite 50% rev growth.

Copart, Cramer said, beat its earnings by 4 cents a share this past Tuesday, but its stock was down 1.7% today. "Let's not forget that Copart is up 16.3% since I mentioned in on April 23," Cramer reminded viewers. He called Copart the single best play on the current steel shortage.