CAI International - Containers Are Cheap

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

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details