Finding undervalued stocks in this economic climate is harder than what it used to be. CAI International (CAP) is an organization I perceive to be undervalued, however; there are some inherent risks associated with the business. Some 70 - 110% upside for the coming two years is expected if the growth trend continues. It seems that the likelihood of further growth is both supported by their ability to raise debt and the market outlook for further container demand. With a track record of high margins and growth this is an interesting case. I expect further earnings growth from the profitable transition from management to ownership of containers which management believes is possible.
The Fundamentals Of CAI's Business Concept
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