Quick, what's the name of that internet auction company? The one with great margins that brings buyers and sellers together, takes a cut of all the sales on its website, and doesn't hold any inventory itself? No, not the company with the P/E ratio nearing 100. I'm talking about a company with a P/E ratio of only 25 - IE, that is 1/4 the price of its better-known brethren. Copart (NASDAQ:CPRT) is one of the only companies in America that benefits from increasing numbers of automobile accidents - the company has around a third of the salvage (read: wrecked) car market. And a seller revolt? Unlikely to happen with this company's clientele, 80% of which are insurance companies, for whom getting rid of salvaged cars is a serious pain in the ass. Copart will tow the cars for them, slap lipstick on the pig by patching up any holes and vacuuming out the car, deal with the Department of Motor Vehicles, and then take a cut of the online auction proceeds. Buyers, who are usually purchasing the cars to scrap them for parts, are also charged for the privelege of participating.
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