Post #14 by kelbon on the Falling Knives board

Investment Strategies / Falling Knives

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No. of Recommendations: 5

I can't find data back far enough to see how their revenue and earnings fared in 2000 and 2008, which would be helpful.

According to Value Line EPS for 2008 were 27' compared to 89' for 2007.
Net profit margin contracted to 0.8% in 2008 compared to 2.2% the previous year.

Based on forward looking earnings estimates KMX is currently within it's normal valuation range.
The stock price has plummeted, but so have earnings. On this basis it doesn't seem particularly undervalued.

Whether now is a good buying opportunity depends on when and how soon earnings are expected to recover.
Referencing analyst's expectations, earnings are predicted to grow'starting next year'at about 7% for
the foreseeable future.

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