Author Topic: KMX - CarMax  (Read 13679 times)

BRK7

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Re: KMX - CarMax
« Reply #30 on: September 24, 2020, 08:02:17 AM »
KMX just posted a quarter that was well above expectations.  Further, mgmt indicates the current Q tracking well.  Yet, the stock is presently down ~13%. 

Thoughts?


coc

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Re: KMX - CarMax
« Reply #31 on: September 24, 2020, 09:21:31 AM »
I'm not able to find anything. Expectations must have been high after CVNA got everyone all excited. As far as I can tell, everything for KMX is well. But happy to hear true dissent.

BRK7

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Re: KMX - CarMax
« Reply #32 on: September 24, 2020, 09:26:43 AM »
I'm not able to find anything. Expectations must have been high after CVNA got everyone all excited. As far as I can tell, everything for KMX is well. But happy to hear true dissent.

My thoughts exactly.

BRK7

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Re: KMX - CarMax
« Reply #33 on: September 24, 2020, 09:38:03 AM »

coc

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Re: KMX - CarMax
« Reply #34 on: September 24, 2020, 09:57:48 AM »
this just in:

https://www.wsj.com/articles/carmax-only-looks-like-a-lemon-11600964848

Good lede. "Unlike car buyers, who are snapping up older vehicles, investors only seem to have eyes for things that are shiny and new these days."

NotSoWise

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Re: KMX - CarMax
« Reply #35 on: September 24, 2020, 10:23:02 AM »
I think there are more and more trades/ volume from computer/ AI trades. Computers scan Annual/ Quarterly Reports, look at key numbers/ statistics, social media, look in the press, etc and short term drive prices up/ down - not necessarily along with human logic after one reads quarterly results. Not saying it explains what has happened to KMX today, just saying things not logical to human brain happen more and more often in the very short term (1-2 days).

Recent book about Jim Simons gives some very high level look at how quant funds work. I have never worked for a quant fund, so it was all new stuff for me.


coc

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Re: KMX - CarMax
« Reply #36 on: September 24, 2020, 10:56:49 AM »
I think there are more and more trades/ volume from computer/ AI trades. Computers scan Annual/ Quarterly Reports, look at key numbers/ statistics, social media, look in the press, etc and short term drive prices up/ down - not necessarily along with human logic after one reads quarterly results. Not saying it explains what has happened to KMX today, just saying things not logical to human brain happen more and more often in the very short term (1-2 days).

Recent book about Jim Simons gives some very high level look at how quant funds work. I have never worked for a quant fund, so it was all new stuff for me.

I'm so sympathetic to this viewpoint that I'm always trying to look for other viewpoints to negate it. It seems too easy to blame. "Damn computers!"

In this case it may well be true though.