Long Position on KMX @ $33.00 on 10/16/2012 (Momentum)

CarMax (KMX) operates as a retailer of used vehicles in the United States.

It also sells vehicles that do not meet its retail standards to licensed dealers through on-site wholesale auctions, as well as sells new vehicles under franchise agreements. In addition, the company provides customers financing alternatives through its finance operation, CarMax Auto Finance, as well as through its third-party financing providers.

Further, it offers a range of other related products and services, including the sale of extended service plans, guaranteed asset protection, and accessories; the appraisal and purchase of vehicles directly from consumers; and vehicle repair services.

As of September 20, 2012, it operated 113 used car superstores in 56 markets. Shares have formed a bullish "flag" and are expected to move higher out of this formation. 

52-Week Trading Range: $24.83 - $35.17

Last Trade: $33.00

Stop Loss: $31.35

Target Price: $36.30

Position closed on 11/21/2012 at price of $34.58 with a 4.79% gain in 36 days.

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