CARMAX (KMX) Stocks
📊 CarMax Inc. is the largest used-car retailer in the United States. It buys, reconditions and sells used vehicles in its franchises and superstores throughout the U.S. The company also assists with the financing of vehicles.It is currently starting an omni-channel experience which provides its customers with the option to complete transactions from home, inside stores or through a combination of both. This experience will be available to the majority of CarMax’s customers by the end of the 2020 fiscal.
📊 CarMax Inc.’s history dates back to 1993. It is headquartered in Richmond, Virginia and todayit has more than 25 000 employees. The company has more than 200 stores across the country and has sold more than 8 million cars.
📊 It sells 721 512 used cars and 450 000 wholesale vehicles at its in-store auctions, during the 12 month period ending February 28, 2018. In the same period 15 used car superstores are opened and the company expects to open 15 more in the 2019 Fiscal Year.
📊 Its subsidiaries include CarMax Business Services, LLC, CarMax Auto Superstores, Inc., Glen Allen Insurance Ltd and CarMax Auto Receivables LLC.
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HISTORY OF CARMAX
- Circuit City Stores, Inc. is the corporate entity behind the CarMax formation. Initially the concept is proposed by Ronald L. Moore, a consultant hired by Circuit City, to look into possible business opportunities for the company beyond their consumer electronics services. In 1993 the first CarMax used-car store is opened.
- A typical CarMax store has between 300 – 400 vehicles and its inventory is turned between eight to ten times every year. Each CarMax location employs 40 sales associates to serve its clients. Every car goes through a thorough inspection process and includes a 90 day/4 000 mile warranty, among other services.
- Although CarMax stores focus on marketing used vehicles, it buys its first new car franchise in 1996 with Chrysler Corporation. In 1997 Circuit City issues the first CarMax stock. The stock is a tracking stock initially – under the Circuit City umbrella.
- By 1999 CarMax adds new vehicle franchises for Toyota, Nissan and Mitsubishi. In October 2002 Car Max officially splits from Circuit City when it is spun off as a stock dividend for shareholders of Circuit City. Shares are also issued to shareholder of CarMax tracking stock.
- The only two new car dealerships that remain as of November 2018, are two Toyota stores in Maryland and Wisconsin.
VISION & VALUES OF CARMAX
- CarMax Inc. puts people first as one of its core values. It offers its employees career growth and a comprehensive benefits package that includes a retirement savings plan. The company operates with integrity and transparency.
- It makes a positive impact on communities in which it operates, through The CarMax Foundation. CarMax and The CarMax Foundation have invested more than $60 million in important community causes.
- The company is also actively involved in conserving energy and minimizing waste generated from its operations.
- CarMax Inc.’s accolades include FORTUNE® magazine’s Best Workplaces in Retail and Best Workplaces for Diversity, recognition by G.I. Jobs as a Military Friendly Employer and Training magazine’s “Training Top 125” companies in America.
MARKET PERFORMANCE OF CARMAX
- CarMax Inc.trades on the New York Stock Exchange under the NYSE stock symbol “KMX”. It is a Fortune 500 company.
- In June 2019 CarMax Inc. reports its First Quarter Results. Net sales and operating revenues increase by 12.0% to $5.37 billion.
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LATEST NEWS CARMAX
Before buying any stock or share one has to consider a few factors.
STEP 1: PROPER RESEARCH IS ESSENTIAL
Upon deciding you want to buy CARMAX Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.
Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.
STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN CARMAX STOCKS / SHARES
It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a $5 stock, multiply 100 by $5 to get $500.
STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE
Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.
STEP 4: OPEN A BROKERAGE ACCOUNT
A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.
STEP 5: COMMIT AND PURCHASE CARMAX STOCKS / SHARES
Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out. Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of CARMAX stocks / shares.
5 Questions to ask yourself before purchasing any stocks or shares.
- Is it the best time to buy this stock / share?
- Should I buy CARMAX stocks / shares in the current economic climate?
- Can I afford to buy this stock / share?
- What is the forecast of the stock / share growth?
- What is the current price per earning ration on the stock / share?
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