- KAR Auction Services has managed to drastically cut its costs during the Covid pandemic. This is largely ignored by the market with the stock still down from its pre-covid level.
- Management indicated during Q2 that volumes were up 8% in June, with growth continuing in Q2. Demand for affordable cars is extremely high as people continue to avoid public transportation.
- The price correction following the acquisition of Backlotcars provides an interesting entry level. Investors at these levels receive potential upside from Backlotcars and Traderev as free options.
For further details see:
KAR Auction Services: Permanent Cost Cuts Make This A Cash Cow