Carsales.com reports on Monday and like many Australian stocks it has a positive correlation to that Australian obsession, the housing market. CAR is currently expanding into the US after completing the buyout of Trader Interactive which could be perfect timing i.e. get set in tough times before reaping the benefits when things improve. The company already has experience on this front having expanded into Brazil just before the country entered a recession in 2013 which ultimately proved a very successful venture i.e. we like the fact they are considering today’s economic uncertainty as an opportunity as opposed to a reason to baton down the hatches.
- We like CAR as a business and its outperformance from the June lows makes it a prime candidate for MM if we do see another bond-inspired market pullback.
- Similar to the market we are neutral ~$22 but we can see ourselves stalking this stock into another pullback if it does indeed unfold.
MM likes CAR under $20
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