Long Position on KAR @ $58.40 on 11/6/2018 (Momentum)

KAR Auction Services, Inc. (KAR) provides used car auction and salvage auction services in the United States, Canada, Mexico, and the United Kingdom.

The company operates through three segments: ADESA Auctions, IAA, and AFC.

The ADESA Auctions segment offers whole car auctions and related services to the vehicle remarketing industry through online auctions and auction facilities. It also provides value-added services, such as auction related, transportation, reconditioning, inspection, title and repossession administration and remarketing, vehicle research, and analytical services, as well as data. This segment sells its products and services through vehicle manufacturers, fleet companies, rental car companies, finance companies, and others.

The IAA segment offers various loss solutions and salvage vehicle auction services that facilitate the remarketing of vehicles for a range of sellers, including insurance companies, dealerships, rental car companies, fleet lease companies, and charitable organizations. This segment also provides catastrophe, vehicle inspection center, and transportation and towing services.

The AFC segment offers floorplan financing, a short-term inventory-secured financing, to independent used vehicle dealers. As of December 31, 2017, the company had a network of 75 whole car auction locations and 175 salvage auction sites.

Shares have formed a bullish "double botttom" formation and are expected to move higher. The 200-day moving average is acting as a support for the formation. Higher share prices are expected for this stock. Buyer beware:  The firm reports its quarterly results today!

Entry Point:  $58.40

Stop Loss:  $55.25

Trading Range: $47.43 - $64.55

Target Price:  $64.30

Updates

4/10/2019 11:52:49 AM

closed at $52.50

Position closed on 4/10/2019 at price of $52.50 with a -10.10% loss in 155 days.

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