Dane Bowler
Value, hedge fund analyst, REITs, long/short equity

Tremendous Growth Potential At CAI International

In a yield starved market, growth companies tend to be overlooked in favor of the big yielders. This lack of attention is the source of opportunity for the non-dividend payer CAI International (CAP). It trades at an estimated earnings multiple of only 7.9 and 6.7 for 2013 and 2014, respectively. This article will explore the catalysts driving CAP's rapid growth and the events required for it to come to fruition.

The rate of growth

In 2011 CAI International grew over 75% to pull in earnings per share of $2.55. Approximately $550mm of capex in 2012 granted them nearly 25% more growth landing at $3.18 EPS. FactSet projects 14.33% and 18.35% growth securing $3.64 and $4.30 EPS in 2013...

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