Casey's General Stores (NASDAQ:CASY) owns and operates roughly 1,750 convenience stores in the Midwestern US. Its stores sell various food and grocery items as well as standard convenience store items such as magazines, health and beauty items, etc. The company's biggest source of revenue is, of course, gasoline; however, CASY's prepared food business is growing rapidly and producing remarkable margins. Shares are pressing up against their all-time high after a monster rally from the mid $40s to the high $60s in just the past year. With the myriad problems of owning convenience stores and the huge rally I'll argue here that CASY shares are greatly overvalued and that a correction is overdue.
Before we get into CASY's business...
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