IPAR Delivers an Aromatic Win, While CPRT Readies to Skid Lower (CPRT, IPAR)

Copart Inc. (NYSE:CPRT) sells used cars online and makes big money doing it.

We traded the stock in the past for a hefty 700% win.

And today, we hope to lay the blacktop for more sizeable profits.

How sizeable?

The potential takeaway on today’s bet is a full-figured 9900%!

But before we get there, we have to stuff our pockets full of some sweet-smelling IPAR gains.

Do It!

We’re closing our IPAR trade of March 20^th that arrived at your inbox under the title Where There’s Stink, There’s Opportunity.

The trade asked you to consider setting the IPAR August 18^th 140 synthetic short for a debit of $3.20.

And now…?

IPAR has retreated significantly, and the short can be closed for $7.20 (13.20/6.00).

Buy back the CALL and sell off the PUT and you walk with $4.00 NET on just $3.20 spent.

And that’s a porcine 125% in just over 60 days.

And now, we once again ride the jalopy dealers at Copart Inc. (NYSE:CPRT) for fun and profit.

Some background, to begin…

Two weeks ago, on May 17^th, CPRT delivered earnings that beat on both top and bottom lines.

And the reaction was overwhelming.

Prices soared…

Then swerved…

Then soured.

And now, we’re facing a situation that calls for proper automotive evasive action.

Your Lincoln Town Car just won’t do.

It’s gotta be a Bugatti!

‘Lefty’ Bugatti…

Anyway, fundamentally, CPRT is posting some troubled numbers.

For example—

• P/E is 36.75,
• There’s NO yield on the stock, and…
• Price to Book is a blown gasket 7.49.

And as the chart below shows, stockholders appear to have waited for the earnings announcement to begin unloading their shares.

Was it the fundamentals?

Well, they certainly didn’t help.

But neither does this—

And that, we view as unlikely.

Good Jews and Noahides—

from our mouth to G-d’s ears!

With kind regards,

Hugh L. O’Haynew

Follow @HughLOHaynew