Stockchase Opinions

Brendan Caldwell LKQ Corperation LKQ-Q PAST TOP PICK Jul 17, 2023

(A Top Pick Aug 05/22, Up 8%)

Aftermarket auto-market parts supplier.
Has since sold shares.
Shifting investment to brand name parts.
A.I. will result in less car accidents and demand for parts. 

$58.620

Stock price when the opinion was issued

Automotive
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BUY
Recycle/refurbish auto-parts. Like it. Buy for sure. Has defensive quality, will bounce back. Grow at 20-25% yearly.
TOP PICK
Largest auto parts recycler in the US with an opportunity to acquire smaller companies. 10% market share. The real upside is that in a downturn, recycled auto parts are a win/win situation.
DON'T BUY

He owned it a few years ago. It is a leader in refurbished used car parts. It turned out the acquisitions were not as economical as in the past. It recently ran up because the used car market is on fire. This will probably die down. It is because of supply shortages of new cars. Now there is a semiconductor shortage for new car manufacturing. He would not buy this one. He would prefer Premium Brands for growth by acquisition.

TOP PICK
North America's largest supplier of after market auto parts. Recent shortage in automobiles presenting opportunity for part suppliers. Profit and financial results strong. Expecting continued strength in performance of the company.
SELL

He owned it for only one month. He made a mistake.